Hedging of exposure
Do you want to hedge your business against exposure to inflation, commodity price volatility, exchange rate risk or interest rate risk? ING has a range of risk management solutions to offer you. We help you assess the risks accurately and limit the impact on your financial results.
Currency exchange hedge
Do you have revenue streams in foreign currencies from selling goods or services outside the euro zone? Do you have liabilities from importing goods from outside the euro zone, or do you have investments outside the euro zone? ING offers a variety of solutions to help mitigate the risk of fluctuating exchange rates:
- Spot: the cash buying or selling of foreign currencies at the prevailing market price.
- Forward exchange contract: the exchange rate at which you must buy or sell a foreign currency on the agreed date is agreed in advance. The futures price is determined by the spot price and the interest rate differential between the two currencies.
- Option structure: choose a tailored level of protection based on exchange rate prognoses. For instance, a minimum and a maximum price are agreed within a tunnel.
Interest rate hedging
Do you have a line of credit linked to the short-term interest rate (Euribor 1M, 3M, 6M, 12M) or a long-term credit facility with an interest rate review? Do you need to finance new projects? ING offers a variety of solutions allowing you to hedge against any interest rate increases. You avail of a periodically variable interest rate with the following payments options:
- Interest Rate Swap (IRS): fixed interest rate linked to the IRS prices in the marketplace
- Cap: maximum interest rate based on market prices
- Tunnel: minimum and maximum interest rate based on market prices
Commodities prices hedge
Does your business buy commodities as an intermediary product, meaning that you cannot simply recharge the price directly to your customers? Do you sell commodities or is your business activity highly energy-intensive? ING Financial Markets has a variety of solutions available to help you manage the impact of commodities prices.
Does your business have a sizeable payroll which is indexed in line with inflation, but you are unable to recharge that cost directly in your prices? Do you have rental income which is adjusted in line with an inflation index? If so, contact ING Financial Markets for a solution to manage the impact of inflation. An inflation swap is one of the options available.
Who is it for?
All mid-size businesses, large enterprises and public institutions looking to hedge against inflation, volatile commodities prices, currency exchange risks or interest rate risks.
Are you interested in ING's risk management solutions?
- Contact your ING liaison officer.