Currency risk - the threat that changes in exchange rates will affect a company’s cash flows, posing a risk to its financial results. This applies to companies with cash flows in USD (metalworking companies, traders of commodities listed on exchanges in USD—such as grain, oil, and metals).
Due to the risks associated with foreign exchange markets and the threat they pose to companies exposed to them, Postbank offers a wide variety of tools for hedging currency risk:
Standard Currency Forward - he client makes a firm commitment to buy/sell a specific currency on a future date at a pre-agreed exchange rate.
Key features:
- Full predictability of cash flows from foreign currency transactions
- The forward contract is limited to execution solely on the pre-agreed future date
- Flexible currency forward - the client makes a firm commitment to buy or sell a specific currency by a specified future date at a pre-agreed exchange rate, with an option for partial fulfillment.
Key Features:
- Option for partial fulfillment of the transaction within a specified time period
- Obligation to fully fulfill the transaction for the agreed nominal amount
- Minimum amount for partial fulfillment under the contract - 25,000 euros and multiples thereof
Forward Plus (EKI Forward) - the client agrees to buy/sell a specific currency on a future date at a pre-agreed exchange rate, with the option to benefit from favorable exchange rate movements up to a specified barrier.
Key Features:
- Opportunity to benefit from favorable exchange rate movements up to a pre-agreed level
- Once the barrier is reached, the product becomes a standard forward
Currency option - guarantees a fixed exchange rate for the client and grants them the right, but not the obligation, to buy (call option) or sell (put option) a specified amount of a currency on the option’s expiration date.
Key Features:
Payment of a premium to acquire the right
* There are two types of options: European-style options - which can only be exercised on the expiration date; and American-style options - where the right to exercise can be exercised at any time prior to the option’s expiration.
For questions and additional information, please contact the Treasury Department.
- 02/81 66 498
- 02/81 66 485
e-mail: Treasury_Sales@postbank.bg
Interest rate risk – the risk of an adverse change in interest rates, leading to
an increase in the company’s interest expenses or a decrease in its interest income.
Due to the significant risk associated with interest rates and the threat of adverse movements, Postbank offers a wide variety of tools for managing interest rate risk.
Interest Rate Swap – an agreement between the bank and the customer, under which the customer agrees to exchange fixed periodic payments for floating payments over a specified period of time, based on a specific notional amount.
Key features:
- Fixed interest rate on a loan/deposit
- A separate and independent product from the underlying loan/deposit
Interest Rate Cap - sets a maximum level on the loan serviced by the customer. The customer is hedged against a potential rise in interest rates above the specified upper interest rate limit, without eliminating potential gains from a decrease in interest rates.
Key Features:
- Limits interest rate fluctuations to a specified level
- A premium is due to purchase the product, payable either as a one-time payment upon contract execution or in installments over time
Interest Rate Option with a Refundable Premium (Refundable Cap) — an interest rate option with two main features: a hedge against a potential rise in interest rates above a specified upper interest rate limit and the option to have the premium refunded.
Key Features:
- Limits interest rate movements to a specified level
- A premium is due to purchase the product
- The premium is refundable if the upper interest rate limit is not breached during the hedging period
Step-Up Swap – an agreement between the bank and the client whereby the client agrees to exchange fixed periodic payments (increasing in steps) for floating payments over a specified period of time, based on a specified notional amount.
Key features:
- The fixed interest rate increases in steps
- The product offsets the initial negative interest rate differential during the term of the interest rate swap
For questions and additional information, please contact the Treasury Department.
- 02/81 66 498
- 02/81 66 485
e-mail: Treasury_Sales@postbank.bg
Commodity risk – the risk of an adverse change in the prices of exchange-traded commodities (metals, agricultural products, energy commodities, etc.) that are produced or consumed.
Commodity risk management instruments:
- Commodity swap – an agreement between the bank and the client whereby the client exchanges a fixed price for a floating price on a specific exchange-traded commodity.
- Commodity option – guarantees a fixed price to the client and grants them the right, but not the obligation, to buy (call option) or sell (put option) a specified quantity of the commodity on the option’s expiration date.
For questions and additional information, please contact the Treasury Department.
- 02/81 66 498
- 02/81 66 485
e-mail: Treasury_Sales@postbank.bg
We’ve mastered the game to perfection!
Whether you’re planning a family vacation abroad or preparing for your next important international business meeting, take advantage of the opportunity to buy and sell currencies from around the world at our offices.
Visit your nearest branch and ask about the current terms under which you can easily and securely exchange the currency you need—either over-the-counter or non-cash*.
We offer an exceptionally wide variety of major and exotic currencies:
- A selection of currencies for non-cash foreign exchange transactions - EUR, USD, GBP, CHF, JPY, SEK, NOK, DKK, RUB, PLN, TRY, CAD, CNY. Transactions are conducted between your accounts in the respective currency.
- The bank also offers over-the-counter exchange for the following currencies: EUR, USD, GBP, CHF.
As one of the leading financial institutions in the Bulgarian foreign exchange market, Postbank also offers the option to negotiate preferential exchange rates with a dealer for amounts above a certain threshold.
Visit our office or take advantage of the convenience of “Postbank Web” online banking.
* An exchange rate different from the officially announced rate may be applied at certain locations, based on internal bank procedures.
Transaction Type: Sale
Market: Over-the-counter
Bond ISIN: XS1856122103
Face Value: 1,500,000 euros
Net Price: EUR 97.00
Transaction Date and Time: July 20, 2018; 2:56:29 PM
The transaction was executed outside a regulated market and a multilateral trading facility (venue XOFF).
Transaction type: Purchase
Market: Over-the-counter
Shares with ISIN: BG1100036026
Quantity: 13,160
Price per share: BGN 25.00
Date and time of the transaction: April 26, 2011; 4:06 PM
The transaction was executed outside a regulated market and a multilateral trading facility.
Transaction type: Sale
Market: Over-the-counter
Shares with ISIN: BG11ZESOAT12
Quantity: 90,257
Price per share: BGN 93.1757
Date and time of the transaction: December 28, 2010; 3:51:00 PM
The transaction was concluded outside a regulated market and a multilateral trading facility.
Transaction type: Purchase
Market: Over-the-counter
Shares with ISIN: BG11ZESOAT12
Quantity: 90,257
Price per share: BGN 93.1757
Date and time of the transaction: December 28, 2010; 3:51:00 PM
The transaction was executed outside a regulated market and a multilateral trading facility.
Transaction type: Repo transaction
Market: Over-the-counter
Shares with ISIN: BG1100075065
Quantity: 115,224
Price per share: BGN 5.09
Date and time of the transaction: November 29, 2010; 4:18:47 PM
The transaction was concluded outside a regulated market and a multilateral trading facility.
Transaction type: Sell
Market: Over-the-counter
Shares with ISIN: BG11ZESOAT12
Quantity: 6,057
Price per share: BGN 98.97
Transaction date: October 26, 2010
Transaction Type: Buy
Market: Over-the-counter
Shares with ISIN: BG11ZESOAT12
Quantity: 6,057
Price per share: BGN 98.97
Transaction Date: October 26, 2010
Transaction type: Sell
Market: Over-the-counter
Shares with ISIN: BG11ZESOAT12
Quantity: 90,000
Price per share: BGN 98.97
Transaction date: October 25, 2010
Transaction type: Sell
Market: Over-the-counter
Shares with ISIN: BG11ZESOAT12
Quantity: 174,301
Price per share: BGN 98.97
Transaction date: October 25, 2010
Transaction type: Buy
Market: Over-the-counter
Shares with ISIN: BG11ZESOAT12
Quantity: 264,301
Price per share: BGN 98.97
Transaction date: October 25, 2010
Transaction type: Sell
Bonds with ISIN: BG2100036065
Quantity: 3,500
Net price: BGN 98.30
Accrued interest: 1.5394
Transaction date: July 24, 2009
Transaction type: Sale
Bonds with ISIN: BG2100036065
Quantity: 5,000
Net price: BGN 98.30
Accrued interest: 1.5394
Transaction date: July 24, 2009
Transaction type: Buy
Market: Over-the-counter
Shares with ISIN: BG1100036026
Quantity: 13,160
Price per share: BGN 25.00
Transaction date and time: April 26, 2011; 4:06 PM
The transaction was executed outside a regulated market and a multilateral trading facility.