Advisory on interest rate hedges

As part of a financing process for its growth, AZ Capital advised a spanis h multinational company on an interest rate structure

A multinational spanish corporate involved in an expansion project, is negotiating with various financial institutions to get financing for the mentioned project.

Under a scenario where the Central Banks have started to increase the interest rate, we analysed the option of entering a hedge structure with the goal to fix the interest rate levels during the financing term.

After a deep analysis of the hedging alternatives and also negotiating with the Bank’s the terms, the client opt to enter a structure with an initial date mechanism the day that the client will potentially need the financing (Forward IRS).

Sector: Consumer Goods and Retail