Derivatives

HSBC can provide the following Cross Currency Swap services (including VND):

• Normal tenor is up to 5 years. Longer tenor is subject to SBV approval.


• Exchange of principal at maturity.
  
• The spot exchange rate at the time of doing the deal determines the principal amounts.


• Interest payments are determined at inception.


• Highly credit intensive.


• You are fully hedged against foreign exchange risks in terms of both principal and coupons.


• The obtainment of capital in the required currency, in the necessary volume and with the required due term.

Benefits

• Cheaper than cash markets by issuing foreign currency bonds directly.
• Can select to exchange principal at the start if desired.
• Simple documentation procedure compared to cash markets through issuing a bond or arranging a loan.
• Customised and can be reversed at any time.
• Off Balance Sheet.