Product Overview 

A cross currency swap is a transaction in which the client and bank agree to exchange interest and/or principal cash flows in different currencies based on predetermined rules and principal amounts on settlement dates. The exchange of interest cash flows between the two parties is required and may include the exchange of principal in the two currencies at the beginning, middle, or end of the transaction. The same exchange rate is used for all principal exchanges. 

Through a cross currency swap, a client can convert assets or liabilities from one currency to another. The interest rate structures can be fixed-for-fixed, floating-for-floating, fixed-for-floating, or floating-for-fixed. 

All currencies involved are foreign currencies.

Target Clients  

This product is suitable for companies that need to hedge exchange and interest rate exposures or lock in financing costs.

Application Procedures  

Risk Tolerance Assessment: Clients must complete a risk tolerance assessment before any transactions. BOC can only sell products with a risk rating that is equal to or lower than the risk tolerance level of retail investors.

Account Opening and Agreement Signing: Clients must use a BOC account to execute a cross currency swap, and sign relevant agreements with BOC before the transaction.  

Credit Facility or Margin Settlement: A sufficient credit limit or corresponding margin is required.  

Transaction Application and Background Review: Clients must submit an authorized transaction application specifying the details. BOC will review the client's purpose for derivatives trading and the background of their needs to ensure the risk characteristics of the client's underlying assets or liabilities match those of the derivatives transactions.

Execution: Upon transaction execution, BOC provides the client with transaction confirmation and relevant documents.  

Settlement: On each settlement date, the two parties conduct the settlement of interest or principal according to the contract terms. Clients can close their positions in advance based on changes in their operations and settle with BOC as agreed.

BOC Advantages  

BOC provides clients with cost-effective quotes for its financial products, supported by the professional expertise of its experienced team for trade execution and product design, helping to establish a pricing mechanism and strong competitiveness in the interbank market.

Risk Disclosure  

Before proceeding with the transaction, please carefully read the risk disclosure statement to fully understand and accept the terms and associated risks of the transaction. Potential risks may include, but are not limited to, policy, market, and liquidity.

The above information is for reference only. Specific details are subject to BOC's product documentation. For cross-border exchange services outside the Chinese mainland, local regulatory requirements shall apply.