Corporate loan with an interest rate collar

• Ensures a hedge against rising interest rates.
• Is safe, allowing you to budget your loan servicing expenses when you know the minimum and maximum reference rates.
• Includes no separate fee for the interest rate hedge.

A rise in interest rates could have a material impact on the interest expenses of a loan. A corporate loan with an interest rate collar gives you a hedge in accordance with the agreed minimum and maximum reference rates. The interest paid on the loan consists of the reference rate, which will have a minimum and a maximum level for the duration of the interest rate collar, and the loan margin. You will pay no separate fee for the interest rate collar.