World's Largest Bank Provides Swaps in Vietnam

Vietnam’s central bank has given a green light to Tokyo Mitsubishi UFJ-Ho Chi Minh City branch to provide interest rate swaps to Kondo Textiles Vietnam. Accordingly, UFJ is liable to help Kondo Textile Vietnam pay loan interest based on the fixed or floating interest rates for certain time.

 

The interest rate swaps have a maximum value of $6.3 million for na eight-year term, conforming to scheduled loans in Tokyo Mitsubishi UFJ-Ho Chi Minh City branch. Tokyo Mitsubishi UFJ must report interest rate swaps to the central bank.

 

This world’s biggest bank has two branches in Ho Chi Minh City and Hanoi with total chartered capital of $45 million. The bank has recently inked a cooperation deal with the Ministry of Planning and Investment to promote Japanese investment capital inflow into Vietnam.

 

In addition to Tokyo Mitsubishi UFJ, some other foreign banks in Vietnam including Citibank and Hong Kong and Shanghai Banking Corporation (HSBC) had also run such a banking service.