Norway's export credit agency Eksportfinans recently entered a cross-currency interest rate swap to convert a JPY50 billion (USD390 million) fixed rate bond issue into a synthetic floating rate dollar-denominated liability, according to Johann Rud, v.p.-treasury in Oslo. The swap matches the maturity of the bond, which comes due in December 2003. He declined to name the underwriters or the swap counterparty. The fx rate used in the swap is JPY128.25, he added.
Eksportfinans is a floating-rate U.S. dollar-based entity and it therefore hedges most of its assets and liabilities back into three-month dollar LIBOR.
