Cross currency swap

Protect liabilities or assets in foreign currencies with a cross currency swap

With a cross currency swap, the company changes the interest payments and instalments of a loan into another currency. For example, a foreign currency loan can in practice be converted into a euro-denominated loan with a cross currency swap, thus eliminating FX rate risk.

A cross currency swap is suitable, for example, for protecting the value of intra-group loans or the value of a foreign subsidiary. Under the contract, the interest payments and instalments are made at an FX rate agreed in advance.

How does your business benefit from cross currency swap?

• Hedge against interest rate risk by fixing the interest payable.
• Hedge against FX risk in the interest payments and instalments on a loan as well as on the exchange of capital.