Interest Rate Swap
Holding a floating interest rate loan in today's unpredictable market can make it difficult to accurately budget for the project and the servicing of the related financing.
An interest rate swap can assist in alleviating some of this budgetary uncertainty. It can be ideal for clients who are looking to minimize concerns about the impact of changing interest rates on debt repayment. A swap transfers your company's interest rate exposure to the bank and offers the security of a predictable interest cost each period.
At or post loan closing, we exchange your floating rate obligations for a fixed rate obligation. The drawdown dates and interest periods are pre-agreed prior to the first drawdown on the loan, although they may be modified at a later time. The swap can be tailored to match the terms of the underlying financing.
Graph: With a swap, the swap buyer is assured of paying the swap rate (3.000%) each month, regardless of market movement (in green).
Our Interest Rate Risk Management team would be happy to discuss your requirements.
| This Product Profile is for information purposes only, is not intended as an offer or solicitation, nor is it the intention of Anglo Irish Bank Corporation Limited ('the Bank') to create legal relations on the basis of the information contained in it. The Bank expressly advises that it shall not be liable in any way whatever (whether in negligence or otherwise) for any loss or damage suffered from relying on this Product Profile. This Product Profile does not purport to contain all relevant information. No part of this document may be reproduced without the prior permission of the Bank. Anglo Irish Bank Corporation Limited ('the Bank') may have proprietary positions in the products described in this Product Profile. The Bank disclaims any warranty or representation as to the accuracy or reliability of the information and statements in this Product Profile. Anglo Irish Bank Corporation Limited is regulated by the Financial Regulator in Ireland. |