Our role was to advise on the best solution to fulfil the mandatory FX and Interest Rate hedging requirement. The debt was split into an onshore CNY tranche and an offshore USD tranche. The requirement was for 100% IR and FX hedging of the offshore tranche.
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Gained an in-depth understanding of the borrower’s business plan for the asset in order to establish hedging objectives
Presented a range of hedging strategies to the client
Reviewed each strategy with the client explaining the advantages and disadvantages in the context of their hedging objectives.
Based on the review of strategies and subsequent discussion, recommended the most suitable approach
Discussed pricing with the lending bank and negotiated a reduction in the spread on the chosen strategy.
Managed the execution call ensuring that the agreed spreads were adhered to by the bank
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