City Bank signs derivative product agreement with Bangla Trac

City Bank has signed an Interest Rate Swap deal of $21.43 million with Bangla Trac Power Unit-1 Ltd for the first time.

An interest rate swap (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.

With this deal, City Bank steps into the OTC derivative products like Interest Rate Swap in this market, said a press release.

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 organizations.

Senior Management from both companies were also present in the signing ceremony held at the at the bank's head office.