Interest Rate Swap Facility

An Interest Rate Swap is a form of financial derivative that enables the exchange of a future stream of floating rate interest payments (normally benchmarked to the bank bill swap rate or BBSW) for a stream of fixed interest payments, or vice versa, based on a specified principal (face value) amount.

WATC’s Interest Rate Swap Facility enables clients with debt facilities to modify the interest rate exposure of their debt portfolio without requiring termination and reissuance of physical loans. This facilitates decoupling management of debt maturity profile and interest rate exposure, thereby significantly enhancing flexibility in debt maturity diversification and interest rate risk management.

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