Offer a wild range products for corporates' investment and hedge purpose
Foreign exchange products
- FX Spot
It refers to a transaction in which both parties settle a deal within two business days based on the agreed exchange rate and currency.
- Outright Forward
When the customer anticipates that there will be foreign exchange payments in the future, by contracting outright forward transactions with KGI bank, clients can lock in the exchange rate in advance. Outright Forward can be used to hedge currency risks.
- Non-deliverable Forward ( NDF )
It refers to a transaction in which both parties settle a deal in cash based on the pre-determined exchange rate and the spot rate at maturity. Also, NDF does not require the physical delivery of the underlying currency. NDF can be used to hedge currency risks.
- Foreign Exchange Swap
Foreign Exchange Swap or FX Swap are agreed by both parties to exchange two currencies on a beginning date and exchange the currency back on an agreed expiry date. FX Swap can be used to avoid exchange rate risks.
- Cross Currency Swap
Cross Currency Swaps are agreed by both parties to the exchange of interest between two different currencies at the same time. The customer can choose whether or not to exchange the nominal principal at the beginning and end period.
- Foreign exchange options
Divided into call and put options. Customers can buy or sell foreign exchange options with KGI Bank according to their own needs, in order to lock in costs or enhance investment returns. The buyer of an option pays the premium to the seller at the beginning of the period in order to obtain the right to exercise the option at maturity. The seller collects the premium at the beginning of the period and undertakes the obligations of the executed contract.
Interest rate products
- Interest rate swap
Interest rate swap means the parties involved in the transaction agree to exchange interest with each other on the same amount of principal for a specific period in the future. Interest amount is based on the agreed principal, interest calculation method, and interest rate.
- Link Stock structured product
Refers to the customer through fixed income deposit combined with selling options to improve the return. On the maturity date, the client has the obligation to purchase the particular stock from the bank at the strike price depending on the close price of the particular stock.
Others or synthetic Products
- Dual currency investment
Means a product that combines "foreign currency deposit" and "sell option", and when the product matures, the principal is converted to another currency, depending on the exchange rate and the agreed conversion rate. Also the return of the product obtained during the investment period is better than the return of deposit.
- According to customer needs, customers can use commodity derivative products to hedge the risk of raw materials price, lock the cost or profit, and avoid price fluctuations in the raw material market. At present, the forms that can be undertaken include commodity option and commodity swap. Linkable underlying include Brent crude oil, 3-month copper futures, etc.
Contact info: K555100@kgibank.com Tel: +886-2-2175-9959