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TREASURY AND INVESTMENT BANKING |
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  | CIRS (Cross Interest Rate Swap) |
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Are you looking for an efficient way to eliminate the currency and interest rate risks? Then you can use the Cross Interest Rate Swap (CIRS). This is basically an agreement about exchanging the principals of two currencies and the interest costs related to these. Party A undertakes to purchase money in currency 1 from party B for a certain amount of money in currency 2, as of the firmly-set date and at the same time, it undertakes a reverse sale of the same amount of money in currency 1 for a certain amount of money in currency 2 in the same exchange rate and as of the firmly-set later date. Within the deal's duration, the parts mutually pay the interests of the currencies which they purchased at the beginning of the deal from each other.
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| Deposit |
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Are you looking for a way to increase the return on your invested money more significantly than with a standard term deposit while maintaining the same safety level? Then you can use the term deposit with an individual interest rate (TVIS). It is a deposit with the interest rate set by the dealer according to the current interbank market prices. The maturity of the TVIS Deposit ranges from O/N (overnight) to one year. The minimum amount of a transaction is 33.193,92 EUR / 1 million SKK* for deposits or an equivalent amount in a foreign currency traded on the interbank market.
* using conversion rate 1 EUR = 30,1260 SKK
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| FRA (Forward Rate Agreement) |
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Are you looking for an effective way to hedge the interest rate risk? You might find the solution in FRA (Forward Rate Agreement). This is a contract between the bank and a client on a future interest rate for a specific term deposit or a loan for a certain agreed future term. In reality, no loan is provided nor is term deposit received - there is simply an exchange of the difference between the interest rate agreed under the FRA (the FRA rate) and the current market interest rate quoted on the financial market at an agreed futuredate for the term deposit or a loan corresponding to the terms of the FRA. The FRA's nominal value only serves to derive the amount paid under the FRA transaction and there is no actual exchange of the nominal values.
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| FX Barrier option |
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Do you need to hedge yourself against an undesirable development in the currency rates? Are you, at the same time, willing to accept a certain level of risk, and thus cut down the price of hedging by 10-90% in comparison with a standard Currency Option? Then you can use the Barrier Currency Option. Such options are divided into "Knock in" and "Knock out" types. Knock in options are options that behave in the same manner as currency (call/put) options, if they are activated during their life. Knock out options are options that behave in the same manner as currency (call/put) options, if they are not deactivated during their life (then they cease to exist). The level of accepted risk results from the type of the Barrier Currency Option.
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| FX Forward |
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Do you need to get financial means in a certain currency under the conditions known in advance? Then the operation Currency Forward is available to you. This means the purchase or a sale of one currency for another at the exchange rate agreed upon in advance between the parties involved. The settlement of the transaction will be carried out as of the date of the fixed term currency (later than 2 working days since the date of concluding the business); however, no longer than the expiry of one year after the date on which the transaction was concluded (or individually). The minimum value of the transaction is 33.193,92 EUR / 1 million SKK* or the equivalent of this sum in another currency traded on the interbank market.
* using conversion rate 1 EUR = 30,1260 SKK
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| FX Option |
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Do you need to buy or sell money at a specific currency and at a given moment? Then you can make use of the Currency Option. The Currency Option represents a right (an option) to buy or sell a given amount of one currency for another currency, at the rate agreed by the counterparts in advance, on the declared date not later than 1 year (or individually). The minimum nominal value of one deal amounts to 100.000 EUR / 3.012.600 SKK* or its equivalent in another currency traded on the interbank market.
* using conversion rate 1 EUR = 30,1260 SKK
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| FX Spot |
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Willing to sell or buy a certain amount in a specific currency under pre-specified conditions? Then the Currency Spot operation is designed for you. In fact, it is the purchase and sale of one currency for another, at a pre-agreed exchange rate. The settlement of the business will be carried out in a standard way as of the date of the spot currency, e.g. within two working days upon the business settlement. The minimum amount per transaction is 33.193,92 EUR / 1 million SKK* or an equivalent of the amount in another currency used on the interbank market.
* using conversion rate 1 EUR = 30,1260 SKK
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| FX Swap |
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A currency swap operation is the combination of two transactions: spot and forward. The product consists in the sale of one currency for another with settlement at spot value at the latest and the repurchase/resale with the settlement at the forward value. Both transactions are concluded at the same time and in the same volumes. The minimum volume for one transaction is 33.193,92 EUR / 1 million SKK* or the equivalent in another currency traded on the interbank market.
* using conversion rate 1 EUR = 30,1260 SKK
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| IRS (Interest Rate Swap) |
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Are you looking for an efficient way to eliminate the interest rate risk? One of the options is the IRS - Interest Rate Swap, e.g. an agreement to exchange the cash flows denominated in one currency, which are derived off a fixed or a flexible basis. Party A undertakes to settle with party B an agreed-upon fixed interest of the concluded principal for a specific period as of the pre-set due dates and, at the same time, party B undertakes to pay to party A an agreed-upon variable interest off the agreed-upon principal for the pre-set period and as of the agreed-upon due dates.
