Ukreximbank signs first foreign exchange swap agreements with Kaissa group

KYIV. Sept 1 (Interfax-Ukraine) – The state-owned Ukreximbank (Kyiv) and the export-oriented agricultural group of companies Kaissa have entered into the first foreign exchange swap agreements, which provide for the sale of foreign currency by the client with its reverse purchase at a certain date in the future, the bank’s press service said on Wednesday.

"Our clients can use such derivatives to protect themselves from fluctuations in exchange rates and promptly receive financing, while not creating an additional debt burden. This is a fairly new financial instrument for the Ukrainian market, the introduction of which became possible as part of the NBU’s currency liberalization," the press service said, citing Director of the Treasury and Investment Services Department of Ukreximbank Anton Boldyrev.

According to the report, foreign exchange swap operations provide the manufacturer and trader of sunflower oil with an additional source of financing to cover seasonal needs for working capital and at the same time allow hedging foreign exchange risk and effectively using temporarily available funds in foreign currency, as well as promptly receiving short-term financing in hryvnia secured by foreign exchange leftovers.

According to the National Bank of Ukraine, as of June 1, 2021, Ukreximbank ranked third in terms of total assets (UAH 252.350 billion) among 73 banks operating in the country.

The Kaissa group of companies is a leading manufacturer and one of the largest exporters of sunflower oil in Ukraine.