Corporate loan with an interest rate collar

You can easily hedge your loans against rising reference rates. A corporate loan with an interest rate collar allows you to determine the minimum and maximum reference rates for an agreed period of time, giving you predictable loan servicing costs.

Your benefits:

  • Ensures a hedge against rising interest rates.
  • Is safe, allowing you to budget your loan servicing expenses when you know the minimum and maximum reference rates.
  • Includes no separate fee for the interest rate hedge.

Features

A rise in interest rates could have a material impact on the interest expenses of a loan. A corporate loan with an interest rate collar gives you a hedge in accordance with the agreed minimum and maximum reference rates. The interest paid on the loan consists of the reference rate, which will have a minimum and a maximum level for the duration of the interest rate collar, and the loan margin. You will pay no separate fee for the interest rate collar.