About the product

Cross-currency interest rate swap (CIRS) is an agreement by which the Bank and the Client undertake to exchange nominals and periodically exchange interest payments in two currencies. The objective of CIRS is to hedge against FX risk with opportunity to simultaneously hedge against interest rate risk in a given currency by way of an off-balance sheet swap of liability currency (e.g. into currency in which company's revenue is generated) and a change of interest risk profile.

Benefits:

  • Simultaneous hedge against FX risk and interest rate risk in a long-term by adjustment of loan currency to currency exposure of the company and determination of a fixed financing costs thereby improving investment return predictability.
  • Transaction is a flexible instrument allowing to adjust its parameters to actual company exposure resulting from its financing agreements.
  • CIRS does not require changes to be introduced to outstanding credit or leasing agreements.

Risk:

  • Transaction valuation during the transaction tenor may be negative relative to prevailing, current FX rates and market interest rates (spot and forward) in transaction currencies. Hence, in case of early CIRS termination such outstanding amount becomes the Client's liability due and payable to the Bank.

Disclaimer

All and any information contained in this commercial publication is for information purposes only and does not constitute an offer in the meaning of the Civil Code of 23 April 1964, or a recommendation or an invitation addressed to anyone (or any group of persons whatsoever) to conclude a transaction involving the financial instruments presented herein. In particular, it does not constitute investment, financial, tax, legal or any other advice.

Any investment decision should be taken on the basis of information contained in “Regulations of spot, forward financial transactions, transactions in securities and term deposits in Bank Millennium S.A.” along with the “Regulations for concluding treasury transactions at Bank Millennium S.A.” or “Regulations on entering into spot and forward foreign exchange transactions and currency swap transactions in Bank Millennium S.A.” or “Regulations on entering into spot and forward foreign exchange transactions and currency swap transactions for natural persons operating a business and being Corporate Banking Client in Bank Millennium S.A.”, not on the basis of the abbreviated description provided herein. The above documents are available in the Bank’s branches and on its website www.bankmillennium.pl.

This publication contains the position of Bank Millennium S.A. (“the Bank”) expressed on the basis of proprietary assessment of facts material for the Bank as well as relevant legal regulations. The Bank assures that it acted with due care in order that information contained herein is accurate and based on reliable sources.
The Bank shall not be liable for financial consequences of making by the Client of transactions on financial instruments described herein.

The risk of using the information contained in this publication, in particular as regards making investment decisions on its basis, shall be borne solely by its recipient.

Financial transactions involve risk, presented in “Description of risks associated with financial instruments offered in the Corporate Banking segment in Bank Millennium S.A.”, available in the Bank’s branches and on its website www.bankmillennium.pl.

Whoever purchases a financial instrument, accepts and carries responsibility for tax liabilities stemming from valid regulations. In case of any doubts, Clients should use the services of a tax, legal or investment adviser. The Bank shall provide any and all additional information, which the Client reasonably requests, to enable him to evaluate risks and nature of the transaction.

Dissemination and distribution of certain financial instruments or products as well as trading in them may be subject to restrictions with respect to certain persons and states, as per relevant legislation. Offering financial instruments and trading in them may be made only in compliance with relevant legal regulations.

The Bank notes that the Client’s receivables resulting from transactions concluded under relevant regulations are not monies covered by guarantee protection in the meaning of the Act of 10 June 2016 on the Bank Guarantee Fund, Deposit Guarantee Scheme and Resolution.

The transaction mentioned in this publication may be inconsistent with your: knowledge, experience, financial situation, risk tolerance or investment goals.

Markets in Financial Instruments Directive

What is MiFID?

Look here to find basic information about MiFID.

Client classification

Read about Client classification rules and the Bank's obligations.

Appropriateness assessment

We will check, which financial instruments and products and investment services are appropriate for you.

Risk description

Read about the nature of financial instruments and products and related risks.

Conflict of interests

We operate in a reliable way and in the Clients' best interest.

Documents

Look here for all documents about MiFID in Bank Millennium.

Channels of access to product information

Internet

Wherever you are, with internet access, you can check account balances and history on a 7/24 basis, also viewing information concerning other products i.e.: cards, loans, guarantees and letters of credit, standing orders or term deposits. You can also conclude FX transactions.

Corporate branch

Get detailed information about Bank Millennium products by contacting Advisors or Treasury Department's Product Specialists/Dealers in the Corporate Banking network.

Contact with Advisor

By phone

Our Consultants will provide you with detailed information and will carry out your instructions. 

801 31 31 31
line available for fixed-line and mobile calls

Related products

Settlement account

Effectively manage financial flows in a company and benefit from the Bank's comprehensive product range.

Leasing

Our leasing specialists will help you propel your business.

Working capital loan

Cash needed to finance day-to-day activities of the company? We have a product to provide it!

Investment loan

The company is growing? Own funds are insufficient for planned projects? We propose a long-term investment loan!