Cross currency swap is a derivative agreement between Shinhan Bank and a customer to exchange principal and interest in one currency for the principal and  interest in another currency.

Product features

Currency: USD, JPY, EUR, VND

Interest rate: Predetermined in the agreement

Maturity date: As agreement between two parties but not exceed principal loan maturity date

Exchange types: Floating => Floating, Fixed => Fixed, Floating => Fixed, Fixed => Floating

Swap types: Principal, Interest, Principal and Interest

Exchange rate: Predetermined at agreement date and applied for the whole CCS term

Interest rates are referenced with different indexes applied in the currency markets (Libor, Sibor, Euribor...).


Hedge against interest rate risk and exchange rate risk, especially for mid-long term loan

Reduce borrowing costs or opportunity costs given relatively accurate forecast of market trend

Restructure cash flows and balance sheet

Exploit the comparative advantage in raising funds in one currency to save other currencies

Switch loans from a particular currency to another currency