Protection from interest rate risk - cooperation between UniCredit Bank and company "Airport City"

UniCredit Bank has signed the Contract on protection from interest risk, so-called Interest Rate Swap, with company "Airport City", one of the largest companies in field of real estate investments and development for business business and commercial purposes.

Interest Rate Swap represents an instrument that turns the loan with alterable interest rate into the loan with fixed interest rate with the aim of making interest rate costs fixed in advance, for certain or whole loan period, and avoiding larger costs that may appear due to increase in interest rate.

By signing the contract on IRS with UniCredit Bank, "Airport City" promised to settle its credit obligations within the next six years, which is the repayment period for the loan of about 50m EUR, according to the agreed, fixed interest rate, regardless of Euribor. In this way, by using very favorable moment to make its interest rate fixed, since the value of euribor has reached its historical minimum, the company has ensured undisturbed completion of long-term investment project.

In order for the juristic persons to protect themselves from the interest rate risk by using IRS, it is not necessary for them to be the clients of UniCredit Bank.