Interest Rate Swap

Solution for Hedging Against Interest Rate Fluctuations

Alternative Hedging Instrument

Hedging alternative for protection against interest rate fluctuations

Anticipate Interest Rate Volatility

Interest rates remain under control

Flexible Payment Schedule

Flexible Payment Schedule Arrangement According to Business Needs

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Solutions for hedging against interest rate fluctuations

    Interest and Fee

    Other Information



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

Interest Rate Swap (IRS) is interest rate transactions between 2 (two) parties (bank and Customer) for a certain period, which involves exchange of interest related payments in the same currency from floating rate into fixed rate (or vice versa)

II. Product Simulation

Customer’s financial condition:
Have a loan facility in USD with floating rate. Customer has concerned on impending USD interest hike in near future.

Loan scheme and IRS fix rate are as follows:

Loan Amount USD 10 mio
Tenor 3 Tahun
Loan interest payment + amortization Quarterly 
Loan Interest USD LIBOR 3M + 2% p.a Quarterly, A/360
IRS Fixed Rate 3.00% p.a

Solution for Client:
  • Enter into IRS transaction which change the loan from floating rate into fix rate as follows:
  • Customer will receive floating interest rate: USD Libor 3M + 2% p.a to pay the loan
  • Customer will pay fixed interest rate: USD 3,00% p.a (amortized) as a payment of fix rate loan
  • Customer synthetically convert their floating USD loan to fix USD loan at 3% until maturity.

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
  4. Click

Terms and Condition

  1. Customer must sign ISDA Agreement and ISDA Schedule Agreement as per agreed with Bank OCBC NISP or other legal form of agreement
  2. Customer must have limit to do IRS which will be given by Relationship Manager
  3. Customer must provide Underlying Document and Suitability to do IRS

  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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