i

This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our
Privacy Policy for more information

عربى
Interest Rate Risk Solution

Interest Rate Swaps

An agreement between two parties to exchange fixed to floating rate payment or vice versa in the same currency for a predetermined period and at a predetermined intervals on a notional principal amount. No exchange of principal is involved only interest payments are exchanged.

Structured Interest Rate derivative solutions

A tailor-made derivative product to help customers hedge their interest rate requirements.

Cap

An interest rate cap is an arrangement whereby, in return for a premium, the seller (writer) of the cap undertakes over an agreed period to compensate the buyer of the cap whenever a reference interest rate (e.g. LIBOR) exceeds the pre-agreed maximum interest rate (cap rate).

Floor

An interest rate floor is an arrangement whereby, in return for a premium, the seller (writer) of the floor undertakes over an agreed period to compensate the buyer of the floor whenever a reference interest rate (e.g. LIBOR) falls below the pre-agreed minimum interest rate (floor rate).

Collar

Is a combination of a cap and a floor of identical specifications except for the strike price. A borrower can buy a cap and simultaneously sell a floor to reduce the cost of the hedge.


TALK TO US TODAY

You can reach us using any of the following numbers

UAB Toll Free

800 474

International callers

+971 6 5987332

Sadara Toll Free

800 72 32 72

Sadara international

+971 6 5987333

welcome to UAB live
Please give us a few details and allow us to help you better
captcha