HSBC strikes Euro-USD seagull transactions with ACI *****
Thursday, 28 April 2011
FE Report
The Hongkong and Shanghai Banking Corporation (HSBC) Limited, Bangladesh has recently closed two EUR-USD Seagull Transactions with ACI Group - one of the country's largest business conglomerates. One of the first of their kind in Bangladesh - the Seagull transaction provides a currency hedging solution for ACI's exchange risk arising from import obligations. Seagull is an option structure that is very popular in the international market as it not only hedges the client's exchange risk, but also offers advantages from any market move in their favour. Unlike a plain forward transaction, the client does not have to pay any premium cost for this. A forerunner in actively analysing various hedging tools used in the international market, ACI Group earlier used a cross-currency option to hedge their currency risk before closing the Seagull deal with HSBC.
The Hongkong and Shanghai Banking Corporation (HSBC) Limited, Bangladesh has recently closed two EUR-USD Seagull Transactions with ACI Group - one of the country's largest business conglomerates. One of the first of their kind in Bangladesh - the Seagull transaction provides a currency hedging solution for ACI's exchange risk arising from import obligations. Seagull is an option structure that is very popular in the international market as it not only hedges the client's exchange risk, but also offers advantages from any market move in their favour. Unlike a plain forward transaction, the client does not have to pay any premium cost for this. A forerunner in actively analysing various hedging tools used in the international market, ACI Group earlier used a cross-currency option to hedge their currency risk before closing the Seagull deal with HSBC.