in order to guide you in your

Cross Currency Swap

You would like to transpose a debt denominated in one currency into another currency, Credit Agricole group offers you a CROSS CURRENCY SWAP solution.

Basic principles

Basic principles

  • The Cross Currency Swap (CCS) allows you to transpose a debt denominated in one currency into a debt denominated in another currency.
  • Your company is financed in EUR from its local bank and makes a foreign currency loan to its subsidiary based outside the Eurozone (example: USD).
  • The notional total amount of financing as well as the amortization schedule are converted at the spot rate. The conversion rate for future capital repayments is set (at the level of the spot rate).
  • Under the CCS, at each interest term, you receive the EUR rate paid for EUR financing, and pay the USD Libor (or fixed rate).
  • At the end of the contract, the client receives the remaining notional total EUR/USD to repay the local bank.
Your needs

Your needs

    • The Cross Currency Swap is aimed at companies wishing to take out loans in foreign currencies and who benefit from the best financial conditions in their local currency.


  • Your business is covered against the exchange risks for capital and interest paid throughout the strategy.
  • The interest paid in a foreign currency can be set at a fixed rate.
  • No implementation costs.


  • Your company does not profit from a possible improvement in the exchange market.
  • Your company does not profit from a low interest rate in the case of fixing the rate paid.


  • The company has had financing in place of 6 million euros, from the 15 September 2016 over 10 years, at the three-month Euribor rate floored at 0% + 0,75%, with the constant three-month amortization of the capital (150K€/three-month quarter).
  • When implementing the CCS, two parameters are agreed: 
    • a conversion rate for EUR/GBP (corresponding to the market price when implemented: 0.85 for our example). This will be used throughout the transaction to convert amounts of capital (or amortization) in EUR into amounts in GBP,
    • the fixed rate in GBP: 2.18% in our example,
  • The flows exchanged under the CCS are as follows: 
    • Initial capital: the company will pay the bank the 6 million euros raised by financing and receive the equivalent in GBP (£5.1 million), which will be used to settle the acquisition.
    • Amortizations: each quarter, the company will receive amortizations in EUR (€150K) and pay amortization in GBP (= 5.1 M £/40 or 150k *€0.85 = £127.5K). The capital in GBP will therefore be amortized on a straight-line basis quarterly in parallel with the capital in EUR. 
    • Interest: in each period, the company will receive interest in EUR (Euribor 3m floored at 0% + 0.75%) on the basis of the outstanding capital in EUR and pay interest in GBP (2.18%) on the basis of outstanding capital in GBP. 

Finally, the company will receive via the CCS all the flows to be paid as part of its debt in EUR: it will thus have no net flow to be paid in EUR and will have converted its debt in EUR into fixed rate debt in GBP. .

And more

With a network of 19 trading rooms around the world, including 5 liquidity centres in London, Paris, New York, Hong Kong and Tokyo, Crédit Agricole Group gives you control of your exchange rates:

  • by offering turnkey solutions for more than 100 currencies
  • by offering you a complete range of products which responds to your needs (simple & complex, coverage and optimisation)
  • by making our region market specialists available to you and their local experts in more than 40 countries.

At the start or during your transactions, we will support you through all your transactions:

  • by identifying with you in advance any potential exposures related to your development,
  • by drawing up a programme with you of coverages adapted to your situation, as well as to your strategy and your investor profile,
  • by executing your orders as best as possible,
  • by ensuring proactive monitoring to offer you alterations depending on changes in market conditions.

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