Cross-currency swap

In a cross-currency swap, the parties commit to periodically pay to the other party the interest calculated at a floating rate or a fixed rate by the same currency (VND or foreign currency), based on the same nominal principal amount. The parties do not exchange the principal amounts.

Customer needs:

  • Control of fluctuation risks in foreign exchange rate and interest rate, especially in mid-term and long-term;
  • Effective management of cash flows of currencies;
  • Reduced the capital cost or opportunity cost based on good evaluation of market trends.

Our solutions:

Cross currency swap (CCS):

  • Switching principal amounts at the start (optional) and principal amounts at the end (obligatory);
  • Reduced original principal amount at maturity, suitable with principal cash flow;
  • Swapping interest rates from floating-floating, fixing - fixing and fixing - floating.