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Hedging Products

In response to borrower demand, IBRD is offering a new range of financial hedging products. They are designed to address the changing needs of borrowers during the life of IBRD loans. Using standard market techniques, IBRD risk management products can transform the risk characteristics of a borrower's IBRD obligations even though the negotiated terms of particular loan contracts themselves may be fixed. These products allow borrowers improved risk management capability in the context of projects, lending programs, or sovereign asset-liability management. IBRD hedging products include interest rate swaps, interest rate caps and collars, currency swaps and, on a case-by-case basis, commodity swaps.


Guidelines for Using IBRD Hedging Products

These guidelines outline procedures for requesting, accepting and executing free-standing hedges between IBRD and a borrower in connection with an IBRD loan made to the borrower under a loan agreeement, within the framework of a Master Derivatives Agreement (MDA).


Hedge Request Forms

NOTE: Please refer to the Guidelines for Using IBRD Risk Managment Products above for procedures on requesting, accepting and executing free-standing hedges between IBRD and a borrower in connection with an IBRD loan made to the borrower under a loan agreeement.

After downloading the file(s), complete the form electronically and then print the appropriate PDF form(s) (providing the information in the required fields) and fax to the number provided on the form(s).

1 An additional fee for convertibility risk may apply for local curency swaps. The amount of this fee will be determined on a country-by-country basis.
2 Expressed as a percentage of the principal amount involved, and payable as a lump sum.

 

 

 

 

 

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