City Bank first time signs Derivative Product Agreement with Bangla Trac

City Bank Limited has signed Interest Rate Swap (IRS) deal of USD 21.43 million with Bangla Trac Power Unit-1 Ltd on September 6 for the first time recently at City Bank Head Office in capital's Gulshan.

IRS is an OTC derivative contract in which two parties periodically exchange interest payments of different types (Fixed and Floating interest rate), on a specified notional principal, during a set period of time. A fixed to floating swap is based on the notion that a floating rate will generate stronger cash flow.

Signing this deal, City Bank steps into the OTC derivative products like Interest Rate Swap in this market. City Bank is actively participating in the Foreign Exchange market in Bangladesh and has been providing customized solutions to its valued customers.

Sheikh Mohammad Maroof, additional managing director of City Bank and M Jahangir Alam, Group CEO, Bangla Trac signed the agreement on behalf of their respective organisations. Senior Management from both parties were also present in the signing ceremony.