Cross Currency Swap

Manage business risk through hedging for principal and interest exchange

Alternative Hedging Instrument

Hedging Alternative for Protection Against Exchange Rate Fluctuations

Anticipate Exchange Rate and Interest Rate Volatility

Exchange Rates and Interest Rates Remain Under Control

Flexible Payment Schedule

Flexible Payment Schedule Arrangement According to Business Needs

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TAYTB Moment 2020 Terms and Conditions

Cross Currency Swap

    Interest and Fee

    Other Information

    Requirements

    Disclaimer

There is no fees or additional cost charged to customer, outside of transaction
I. Product Description

Cross Currency Swap (CCS) is cash flow exchange transactions between 2 (two) parties (banks and customers) periodically for a certain period in the future in 2 (two) different currencies involving the exchange of principal and interest rates. Interest rates from these two different currencies can be exchanged in floating-floating, floating-fixed, fixed-floating or fixed-fixed


II. Product Simulation


Customer’s financial condition:
Have a loan facility in USD, however their operational activities are in IDR. Hence, Client would be better to have a loan facility in IDR.

Loan scheme and CCS fix rate are as follows:

Loan Amount USD 10 mio
Tenor 3 Years
Loan interest payment + amortization Quarterly 
Loan Interest USD LIBOR 3M + 2% p.a Quarterly, A/350
CCS fix rate
IDR 12.5%
Initial exchange and final exchange 13,500

Solution for Client:

  • Enter CCS transaction to convert synthetically their USD loan to IDR loan.
  • Use exchange rate of USD/IDR 13,500, thus change synthetically all USD payments to IDR payments for their loan at 13,500.
  • Client will receive a floating rate of USD LIBOR 3M + 2% p.a from CCS to pay their USD loan.
  • Client will pay a CCS fix rate of IDR 12,50%.
Outcome:
  • Client will use exchanged rate of USD/IDR 13,500 for initial exchange and final exchange. The interim exchange also use exchange rate of 13,500
  • Client will pay a fix rate of IDR 12.50% p.a.
  • Client will receive a floating rate of USD LIBOR 3M + 2%

 

III. Risk of Product and Other Information
  1. Market Risk
    Risk arises due to fluctuation or movement of the reference instruments (exchange rate and interest rate)
  2. Credit Risk
    Risks that arise if a customer is unable to meet his obligations in accordance with the facilities provided, the Bank has the right to liquidate the customer's position and all costs that may arise will be charged to the customer. The bank also has the right to propose additional collateral if the assets and market value of the product are insufficient for the market value
  3. Settlement Risk
    Interference or failure during the settlement process which can cause delays in settlements outside the Bank's control. The customer may be asked to bear the loss or costs incurred because of a pending settlement

IV. Facility / Channel

Transaction can only be performed with Treasury Advisory or contact the Relationship Manager (RM) for more information related to this product

V. Complaint Procedure

Customers can submit complaints related to products through:

  1. Call OCBC NISP di 1500 – 999 (domestic call) atau 021-26506300 (overseas call)
  2. Contact Relationship Manager (RM)
  3. Email to callcenter@ocbcnisp.com
  4. Click www.ocbcnisp.com
Terms and Condition
  1. Customer must sign ISDA Agreement and SIDA Schedule Agreement as per agreed with Bank OCBC NISP or other legal form of agreement
  2. Customer must have limit to do CCS which will be given by Relationship Manager
  3. Customer must provide Underlying Document and Suitability to do CCS

  1. You hereby acknowledge that you have read, received explanation and understood the product and/or service as specified in this Summary of Product and/or Service Information (“Summary”) and have informed, understood and accepted any consequences of product and/or service including all inherent benefits, risks and costs.
  2. This Summary is intended only as an information and does not aim to be a basis for investment decisions. Past performance is not an indication of future performance. Any proposal documents for investment related products, must be studied further. Any projections, opinions or other statistical facts displayed in this information are only an indication and are not guaranteed in any form. You must determine your own decisions in accordance with the needs and investment strategies by considering legal, tax and accounting issues. Based on good intentions and moral responsibility, Bank OCBC NISP and each of its employees are not responsible for any direct or indirect losses, or as a consequence arising from the use of and dependence on this information in an investment decision.
  3. Bank OCBC NISP reserves the right to reject your product and/or service application if it does not fulfil the requirements and the application of laws and regulations.
  4. You have to carefully read this Summary and contact Bank OCBC NISP if there are further queries in respect of the product and/or service contained in this Summary.
  5. This Summary has been adjusted to be in accordance with the provisions of regulations including the regulations of Financial Service Authority.

This Summary is made in English and Bahasa Indonesia, and in the event of inconsistency between the version, Bahasa Indonesia shall prevail.

PT Bank OCBC NISP Tbk terdaftar dan diawasi oleh OJK dan merupakan peserta penjamin LPS

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