Cross Currency Swap
Cross currency swap is an agreement to exchange interest payments in one currency for those denominated in another currency.
Tenor of cross currency swap ranges from 1 to 10 years.
Features & Benefits
Suitable for institutions with loans denominated in one currency, while its revenues are denominated in a different currency.
For example, you have a USD floating loan but has only SGD revenues to service your USD loans. Hence, you are exposed to both FX and interest rate risks
- A defensive and conservative hedging strategy for institutions who wish to protect against both FX and interest rate risks
- Simple and straightforward hedging solution
Can be customised to meet your requirements:
- There are both principal and interest exchanges in the respective currencies
- No upfront fees payable
- Available in different currency pairs (for example, USD/SGD, USD/JPY, EUR/GSD, etc) and available to hedge against different floating rate market indices (such as SGD Swap Offer Rate, USD Libor, EURIBOR, etc)
To apply, all institutions have to set up a CCS Line with the Bank. The CCS line states the maximum amount and tenor that you may contract at any one time.
- Visit us at:
United Overseas Bank Limited
Financial Institution Sales
80 Raffles Place
5th Storey UOB Plaza 1
Tel: 6233 6032