Product Name

Interest Rate Swap

Product Descriptions

Interest Rate Swap refers to the operation of converting the debtor’s own floating rate debt into fixed-rate debt, or converting the fixed-rate debt into floating rate debt according to the interest rate trend in the international capital market.

Product Features

1.Corporate clients may convert floating rate debt into fixed rate debt, or fixed rate debt into floating rate debt, with a view to avoid losses caused by interest rate fluctuation, or to lower interest rate costs.

2.This product can be used to reduce customer borrowing costs, or to avoid the risks caused by interest rate fluctuation, and to fix their own marginal profits.

Target Customers

Clients who have the need to hedge their interest rate risk: companies with loans with fixed or floating interest rate.

Process

1.Agreement signing: Before conducting the transaction of Interest Rate Swap with Bank of China, clients need to sign the ISDA agreement and Derivatives Transaction Request Form.

2.Deposit implementation: clients are required to provide a certain amount of margin deposit or have the corresponding credit limit deducted by our bank.

3.Transaction application: Clients provide the IRS transaction details in the form of written application.

4.Completion of transaction: Once the transaction is confirmed, Bank of China shall provide transaction confirmation to clients in written form.

5.Settlement: After the transaction, both the customer and the bank will settle based on the transaction confirmation, and exchange interest payment (floating/ fixed) on every pre-determined exchange date.