City Bank first time signs derivative product agreement with Bangla Trac

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

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.

Through this deal City Bank steps into the OTC derivative products like Interest Rate Swap in this market. The bank is actively participating in the foreign exchange market in Bangladesh and has been providing customized solutions to its valued customers, said a media release on Monday.