Interest Rate Swap
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IRS is a contractual agreement entered between two counterparties under which each agrees to make periodic payment to the other for an agreed period of time based upon a notional amount of principal. |
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One party receives a FIXED rate of interest in return for paying a FLOATING rate of interest. |
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There is no exchange of principal but the interest amounts are calculated on a defined notional principal. |
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It provides certainty when the customer is planning for their business. |
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It has no lock-in period, i.e. customer can unwind/cancel the existing IRS if the customer repays the loan early. |
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It can be tailored to suit customer’s interest obligations. |
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It may be packaged with a new loan or used to hedge the existing loans. |
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There is no upfront fee payable. |
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Available currencies are all major currencies and SGD with maximum tenor of 10 years. |
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For further information, please visit our Branch,
contact our Business Development Department on (65) 6602 7848 / (65) 6602 7849, or email us at info@hkbea.com.sg. |
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