Standard Chartered is talking with four possible counterparties about entering an interest-rate swap with a maturity of up to seven years. "It's in the pipeline," according to Madhav Shankar, manager of derivative products in Mumbai. He added that corporates in India are looking for longer-term swaps to hedge outstanding balance sheet liabilities. Shankar believes the market for five to seven-year interest-rate swaps will develop rapidly, within the next few months. He declined to name the potential counterparties.
The bank recently completed a five-year interest-rate swap with the Industrial Development Bank of India, which is to date the longest maturity swap in the Indian market.
