Interest Rates Swap
By entering into an Interest Rate Swap (IRS) to pay fixed and receive floating rate, a company can effectively create a fixed interest rate on its loan.
Tenor of IRS ranges from 1 to 20 years.
Features & Benefits
- An IRS is an agreement between two parties to exchange interest payments, based on a nominal principal, over a certain period of time. One party will pay a floating rate and the other party will pay a fixed rate
- Suitable for institutions with floating rate loans/liabilities
- A defensive and conservative hedging strategy for institutions who wish to protect against rising interest rate risk
- Simple and straightforward hedging solution
- No exchange of notional amount, only exchange of interest payments
- No upfront fees payable
- Available in different currencies (for example, SGD, USD, EUR, JPY, etc) and available for hedging against different floating rate market indices (such as SGD Swap Offer Rate, USD Libor, EURIBOR, etc)
To apply, all institutions have to set up an IRS Line with the Bank. The IRS 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