Two parties agree to pay each other interest in the same currency at an pre-determined paying and receiving interest rate (fixed or floating) on the same nominal amount
Introduction
Benefits
Fixed borrowing cost, preventing and mitigating interest rate risks
- Fixed borrowing cost, preventing and mitigating interest rate risks, especially with mid and long-term transactions
- Flexible structure, matching client’s underlying transaction
Required Documents
Clients must provide documents of underlying transaction in accordance with applicable SBV regulations on interest derivatives
