Financial Derivatives

ADB uses financial derivatives to raise operationally needed currencies in a cost-efficient way, usually undertaking currency and interest rate swaps simultaneously with an issue of bonds.

These transactions are fully hedged to remove currency and interest rate risk.

Effect of swaps on currency composition of outstanding borrowings

31 December 2013
Currency Composition of Outstanding Borrowings  (Before Swaps)
Currency  Composition of Outstanding Borrowings  (After Swaps)

a Other currencies include Brazilian real, Canadian dollar, yuan, Indian rupee, ringgit, Mexican peso, New Zealand dollar, Norwegian Krone, South African rand, Swiss franc, baht, and Singapore dollar.
b Other currencies include yuan, Indian rupee, and Swiss franc.

Effect of swaps on interest rate structures of outstanding borrowings

31 December 2013
Interest Rate Structure of Outstanding
Interest Rate Structure of Outstanding

 

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