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Depending on global network advantage and specialized service teams, ICBC offers diversified professional risk management product so as to assist client to conduct scientific management on the various risks in the operation globally and ensure that clients can effectively control the risks from fluctuations of interest rate and exchange rate when they are pursuing fund earnings.
1. Exchange Rate Risk Management Products
(1)Forward Foreign Exchange Transaction
ICBC offers forward foreign exchange transaction product to help client effectively prevent risk and loss arising out of the fluctuation of the exchange rate. The product is applicable to clients with demand on forward collection and payment of foreign exchange, predictable term of collection and payment as well as currency collected different from currency paid.
? Client shall sign an agreement with ICBC.
? If client can't fulfill the agreement, client can apply for extension from ICBC within provided term.
(2)Foreign Exchange Option
ICBC offers foreign exchange option product to help client fix future exchange rate so as to maintaining value and preventing risk. The service is applicable to clients with demand on investment or preventing risk.
? Client shall sign an agreement with ICBC.
(3)Currency Swap
Client can convert the debt measured by one currency to the debt or asset measured by another currency through currency swap transaction offered by ICBC in order to realize the goal of preventing exchange rate risk and lowering cost. The service is applicable to clients have long-term non-dollar debt.
? Client shall sign an agreement with ICBC.
? ICBC offers currency swap of USD, Yen, Euro and other currencies. Term: 2-10 years.
2. Interest Rate Risk Management Product
(1)Forward Interest Rate Agreement
Client can conduct hedging for the future interest rate change through forward interest rate agreement offered by ICBC. The service is applicable to clients with some risk consciousness and certain ability to bear risk.
? Client shall sign an agreement with ICBC including amount, currency, maturity and other contract conditions.
? Term of forward interest rate agreement is two years at most.
(2)Interest Rate Swap
Through interest rate swap transaction offered by ICBC, client can convert the debt of floating interest rate into debt of fixed interest rate, or vice versa, in order to realize the goal of preventing interest rate risk and lowering debt cost. The service is applicable to enterprises with long-term non-dollar debt and all clients that have or will have debts (including domestic loan or foreign loans) immediately.
? Client shall sign an agreement with ICBC.
? ICBC offers interest rate swap of USD, Yen, Euro, Pound and other currencies. Term: 2-10 years.
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