Update your browser

Update your browser

You are using an old version of your browser. We recommend you update it or change browser for a better web experience.

Corporate
BranchesHelp
Can we help you?
  • Call the number
    902 22 00 81
    From Monday to friday (8 to 22h)
  • Online Care - Chat
  • Visit
    our branches
Do you want us to call you
Send us your details and we will call you

Our pledge to companies

Interest rate collar

Interest rate collar

An interest rate collar is a strategy with options by means of which you will be ensured some limits to the fluctuation of interest rates.

It will be useful to you if your company has:

  • Financing (loan, mortgage, lease, credit facility, etc.)
  • An investment linked to interest rates

1. Financing


If your company has financing (loan, mortgage, leasing, credit facility, etc.), through an interest rate collar, you can limit the fluctuations of interest rates between a minimum rate (floor) and a maximum rate (cap) for all or part of the term of the latter.

On maturity of every period:

  • Receives the variable rate stipulated (EURIBOR 3 months, for example)
  • Pays a rate in agreement with the strategy:
    • if variable rate < floor: floor
    • if floor < variable rate < cap: variable rate
    • if Cap < variable rate: cap

Gráfico1

The collar is settled by offset. The effect of the settlements of the collar for the client is to neutralize variable payments of his/her financing to make them fixed if the set limits (floor or cap) are exceeded.

2. Investment


If your company has an investment linked to the interest rates, by means of an interest rate collar, you can limit the fluctuations of the interest rates between a minimum rate (floor) and a maximum rate (cap) for all or part of of the term of the latter.

upon maturity of each period:

  • Pays the variable rate stipulated (EURIBOR 3 months, for example)
  • Receives a rate in agreement with the strategy:
    • if variable rate < floor: floor
    • if floor < variable rate < cap: variable rate
    • if cap < variable rate: cap

Gráfico2


The collar is settled by offset. The effect of the settlements of the collar for the client is to neutralize variable charges of his/her investment to make them fixed if the set limits (floor or cap) are exceeded.

  • Buscador oficinas Come and see us

    Correo electronico Write to us

    Send us an

    email


Other products that may be of interest to you: