Swap transactions minimize the funding costs of our customers and enable them to perform effective cash flow and risk management.

  • Currency Swap
  • Interest Rate Swap
  • Cross Currency Swap

Currency Swap

The currency swap, in which cash flows in different currencies are exchanged, is a type of agreement in which two currencies are exchanged for a certain period of time at the specified exchange rate at the value date and maturity date. Currency swap transactions are protected from exchange rate risk and only bear interest rate risk.

Currency swaps are used to reduce the cost of borrowing and to regulate the cash flow without incurring exchange rate risk.

Interest Rate Swap

Interest rate swaps allow the interest rate structure of debts in the same currency to be converted from a variable interest rate to a fixed interest rate, or from a fixed interest rate to a variable interest rate based on a benchmark rate. Interest rate swaps allow the effective management of risk.

No capital changes hands in interest rate swap transactions; only the interest amounts change hands in connection to the relevant periods.

Cross Currency Swap

Cross-currency swap transactions allow effective risk management through the exchange of different currencies and different interest rates (fixed or variable) between the parties, By using the currency swap with the interest rate swap.