Ford Credit Canada has converted its recent DKK400 million (USD48.5 million) bond offering into Canadian dollars. Terry Huch, manager for fixed-income investor relations in Dearborn, Mich., would not comment specifically on why the company entered into the swap, but said all of its decisions are driven by the cost of funding and ongoing access to investors in diverse markets. Ford Credit Canada often issues in foreign currencies and converts back into Canadian dollars, Huch added. He would not comment on the exchange rate or maturity of the swap. The underlying bonds have a maturity of five years.
Ford Credit Canada has USD1-3 billion in foreign currency needs for the rest of the year, and has already completed USD5 billion in the first quarter. Huch would not identify the counterparty on the swap, but said the majority of its counterparties are rated single A or better, and the minimum credit rating is BBB. Deutsche Bank underwrote the bond offering and it was guaranteed by Ford Motor Credit.
