Interest Rate Swap

Interest Rate Swap is the insurance products for VND interest rate risks in the event that market interest rates tend to be unfavorable for the original transactions, bringing best benefits for customers

  • Basic Interest Rate Swap or One currency Interest Rate Swap (IRS):
    • Allow conversion from floating rate to fixed rate or vice versa without changing the conditions of the original transactions
    • With this product, customers can hedge against interest rates in Vietnam Dong in the event that market interest rates tend to be unfavorable for the original transactions
    • Original transactions can be either deposit, issuance or investment of valuable papers, loans, leasing, buying goods on credit
  • Cross Currency Interest Rate Swap (CCIRS)
    • Allow customers to make periodic interest rate swap of the two currencies. In such transactions, customers and VPBank conduct periodic exchange of interest payments (according to fixed or floating interest rates) of a currency to the interest (according to fixed or floating interest rates) of the other currency
    • Allow customers to hedge interest rate risks as well as change the risk list in accordance with the identification and taste for risk of the customers
    • Principal amount of the transaction can be swapped at the beginning of the term (if any), and/or descending/ascending during the term, and at the end of the term, according to spot foreign exchange rate agreed at the initial  time of transaction. The exchange of the principal amount at the end of the term is compulsory in Cross Currency Interest Rate Swap
       
  • To allow prevention of adverse movements in interest rates
  • Flexible connection and simple structure between Product and conditions
  • No additional charges when customers conduct the currency interest rate swap