Woori Bank has arranged a loan of 70 million pounds ($93 million) and a matching interest rate swap for a London-based company, completing its first corporate derivatives deal through its London Trading Center, the lender said Monday.
The transaction, signed Sept. 29 in cooperation with Woori’s London branch, allows the borrower to exchange floating-rate interest payments for fixed payments, reducing uncertainty over borrowing costs.
Woori hedged the swap directly in the London market through its own derivatives trading book. The lender said it was the first South Korean commercial bank to manage and hedge such a transaction locally using an in-house book.
The deal marks a shift from supporting overseas derivatives transactions remotely through Seoul to managing positions directly in London.
To enable local trading, Woori extended its headquarters-based trading infrastructure to London under a new global operating model. It also established trading relationships with international banks to secure liquidity and competitive pricing.
Woori plans to broaden its derivatives offerings and expand its network of counterparties.
“The London Trading Center serves as a hub connecting local market liquidity with corporate financing needs,” said Lee Sung-min, head of Woori Bank’s London Trading Center. “We will strengthen our pricing competitiveness and traders’ ability to respond to market conditions while expanding our partnerships and derivatives offerings.”
yejinlim@heraldcorp.com
