Deutsche Bahn Enters Swap
GlobalCapital, is part of the Delinian Group, DELINIAN (GLOBALCAPITAL) LIMITED, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 15236213
Copyright © DELINIAN (GLOBALCAPITAL) LIMITED and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
Derivatives

Deutsche Bahn Enters Swap

Deutsche Bahn Finance, the finance-arm of the German rail network, has entered a cross-currency interest rate swap to convert a CHF75 million (USD55.6 million) fixed rate bond into a euro-denominated synthetic floater. Hartwig Schneidereit, head of capital markets and risk management in Berlin, said the rail firm pays a six-month Euribor-based rate and receives the 3.06% coupon on the bond. The swap mirrors the 10-year maturity of the bond.

The rail firm routinely issues in foreign currencies, including the Swissie, and always exchanges the issue for euros. The interest rate swap, meanwhile, allows Deutsche Bahn to take advantage of low interest rates on a positively sloped interest rate curve, he added.

Related articles

Gift this article