We understand that businesses run on risk. We are here to help you manage your risk with our extensive capabilities across foreign exchange, interest rates, credit and fixed income, commodities, and equities. Whether it is locking in the exchange rate for a sale that will occur in two months, or hedging your risk against increasing crude oil prices, we will find a solution for you.
With expertise, experience, and a solid track record in holistic risk solutioning across various asset classes and currencies, our in-house specialist team structures hedging solutions customised to your needs. Our offering extends across multiple areas of consideration, including hedge accounting, market insights/trends, best practices, and execution. Some of our common conventional and Islamic hedging examples include:
- Currency hedging for importers and exporters
- Liability hedging for interest rate and currency exposures
e.g. floating rate loans / financings and bond / sukuk issuances
- Asset-liability duration mismatch hedging for insurance / takaful and pension funds
- Commodity price hedging for producers and consumers
We also aspire to provide more sustainable hedging solutions for our clients. In 2021, we entered into a Sustainability-linked derivative (SLD) transaction in the form of an interest rate swap with a notional value of RM2.45 billion. It is the world’s first Malaysian Ringgit denominated SLD transaction and to date Asia’ largest ESG linked derivative transaction by notional value. Following this transaction, CIMB is committed to execute more innovative treasury and derivative transaction with ESG-related pricing components for our clients.