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Plain Vanilla Interest Rate Swap

Product Name

Plain Vanilla Interest Rate Swap

Introduction

Plain Vanilla Interest Rate Swap is an agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for another based on a specified principal amount. Interest rate swaps often exchange a fixed payment for a floating payment that is linked to an interest rate (most often the 3M LIBOR). The value date of interest rate swaps can be effective on spot or any specified date in the future.

Features

Plain Vanilla IRS offers customers the following opportunities:

1. To lock debt cost or asset return at a fixed or lower interest rate;

2. May convert floating rate debt/asset into fixed rate debt/asset or vice versa.

3. To hedge interest rate risk.

Eligible customers

Corporations seeking to lock or reduce/increase) its mid/long term debt (or asset) cost (or return).

Service Time

Customers can go to Bank of China Macau Branch or any sub-branch in person during office hours.

Risk Disclosure

1. The interest rate risk: If the interest rate goes against customers’ expectation, the agreed interest rate could be worse than the prevailing interest rate in the market at the end of each swap period;

2. Early termination may incur additional cost.

Please call our hotline 888-95566 for more details.

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