Currency: USD, JPY, EUR
Interest Rate Swap (IRS) is a derivative agreement between Shinhan Bank and a customer, in which one party exchanges floating interest payments with fixed interest payments of another party, for a single currency.
Interest rate: Predetermined in the agreement
Maturity date: As agreement between two parties but not exceed principal loan maturity date
Swap types: Floating => Fixed, Fixed => Floating
No swap on principal amount (Interest swap only)
Interest rates are referenced with different indexes applied in the currency markets (Libor, Euribor., Sibor..).
Hedging solution for corporate loans, especially for mid-long term one
Control of interest rate risk
Fix borrowing cost over IRS contract term