Posted by: 1 june, 2021
In order to provide support and enable one of the largest textile enterprises of Uzbekistan with the opportunity hedge its long-term currency risks, in May 2021 Ipoteka-bank entered into its first ever FX forward time option with one of the leading German banks, Commerzbank AG (Zurich Branch).
This transaction took place within the framework of the General Agreement of the International Association of Swaps and Derivatives (ISDA Master Agreement) concluded by Ipoteka-bank with Commerzbank AG at the beginning of 2021. The Master agreement allows Ipoteka-bank to conclude transactions with derivative instruments aimed at reducing short-term and long-term currency risks, including on international trading operations of its corporate clients by fixing the future rate of the corresponding foreign currency.
Commerzbank AG and Ipoteka-bank have 20 years of cooperation. Since 1999, the banks have established close interbank relations, and as one of the most important partners, Commerzbank provides services such as servicing correspondent accounts in foreign currencies, provides credit lines for financing investment projects, trade finance and others. Currently, Ipoteka-bank is working on the development of standard products and tariffs for its corporate clients, allowing them to more effectively manage currency risks. Ipoteka-bank also continues to cooperate with other well-known international financial institutions in this area aimed at supporting domestic enterprises in minimizing their foreign currency risks.
Commerzbank Aktiengesellschaft is a major German bank operating as a universal bank, headquartered in Frankfurt am Main. In the 2019 financial year, the bank was the second largest in Germany by the total value of its balance sheet. The bank is present in more than 50 countries around the world and provides almost a third of Germany's trade finance.
Joint-stock commercial mortgage bank "Ipoteka-bank" is the largest mortgage bank in Uzbekistan with more than 30% share of the mortgage market of the republic. Ipoteka-bank today is a universal bank providing a wide range of banking services to retail and corporate clients through a well-developed network of 39 branches and approximately 400 sales points in all regions of Uzbekistan. Ipoteka-bank is constantly striving to grow its business, expanding its client base, increasing the number and types of services to meet the needs of each client.
