Hong Leong Bank's Treasury Division services the requirements of local and international corporations, institutional and individual investors, financial institutions and other market participants. We provide value-added integrated tailor-made solutions and offer timely information and competitive rates on a range of financial products.

The dealing room in Ho Chi Minh City is complemented by key operations in Kuala Lumpur, Singapore and Hong Kong. Backed by the strength of the Hong Leong Group and our strong relationship with a large network of international banks, we are able to provide global execution capabilities to our clients.

FX Spots

A spot foreign exchange (FX Spot) contract is an agreement to buy or sell currencies, with delivery normally two business days after the date of contract. The value date of the contract can be on the same day of the transaction or the next business day as well.

Features

• Special pricing (Special Rate) for amount above equivalent USD 10,000
• Simplest tool to cover foreign exchange exposure and requirement

Primary Users

Corporations, importers, exporters and individuals with a need to exchange one currency for another.

FX Forwards

FX Forwards is a contractual agreement to buy or sell a specified amount of foreign currency against VND or other foreign currencies on a predetermined future date/period at an agreed exchange rate. This is basically a tool that enables customers to hedge their foreign exchange exposure.

Features

• Since the exchange rate is fixed at the time of contract, corporations very often use FEC to hedge against future exchange rate exposure
• Once hedged, the actual cost of payment for foreign purchase and/ or the actual receivables from export proceeds can be determined
• Importers are able to price goods at a certain profit margin and exporters are guaranteed the amount receivable in foreign currency
• Hedging FEC can minimize the cost of repaying a foreign currency loan by locking in the cost of borrowing and eliminating exchange rate risk of a foreign currency investment
• Credit line is required

Primary Users

Corporations, importers and exporters who transact in foreign currencies to hedge against future exchange rate exposure.

Tenor of FX Forwards

Maturity Date shall not be later than 12 months from deal date.

FX Swaps

An FX swap is the simultaneous purchase and sale of the same amount of a given currency for two different dates. In other words, the buyer acquires a currency for a limited period of time and, when this time period elapses, exchanges it for the original currency.

Features

• FX swaps is an efficient way for corporations who have foreign currency but seek to generate liquidity for another currency for a period of time without exchange rate risk.
• Credit line is required

Users

Corporations, importers and exporters who have temporary availability in one currency but have a demand for another currency.

Tenor of Swaps

Maturity Date shall not be later than 12 months from deal date.