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Frontclear closes another currency hedging transaction with Unibank and TCX in Azerbaijan

Frontclear closes another currency hedging transaction with Unibank and TCX in Azerbaijan July 2022. Frontclear arranged and structured an AZN/USD non-deliverable cross-currency swap (NDCCS) transaction with Unibank Commercial Bank OJSC (Unibank). This transaction has made it possible for Unibank to effectively convert their USD liabilities into AZN liabilities, making it possible to provide its clients with local currency financing. The NDCCS transaction is documented under a Master ISDA Agreement. The transaction helped to further clarify certain legal issues related to close-out netting in Azerbaijan, which were mitigated by effective Frontclear deal arranging and structuring.

“We are happy to execute another ISDA derivative transaction in Azerbaijan and further advance the development of Azerbaijan’s money markets. The transaction strengthens global markets players’ ability to access the Azerbaijani market and mitigate legal risks in the country. Our involvement continues to promote best practices such as margining in Azerbaijan.” – Andrei Shinkevich, Senior VP Frontclear

“We are pleased with the Frontclear partnership that allowed TCX to offer a way for Unibank to swap its USD liabilities into AZN, enabling Unibank to meet the demand of its customers for Manat funding. TCX is also a beneficiary of this partnership as Frontclear covered the credit and legal risks. Avenues are opened for TCX to venture into direct relationships with partners with more comfort in the future, serving the long-term relationship of the Fund.” – Jerome Pirouz, Senior VP Structuring,

TCX Chairman of the Management Board of Unibank CB Faig Huseynov stressed that the partnership with such authoritative organizations as Frontclear and TCX will create new opportunities for the bank’s customers:

“We are very pleased that the NDCCS transaction will open-up new opportunities for financing local business, which is one of the important targets in Unibank’s strategy. This agreement will provide more opportunities to provide our corporate clients with affordable and low-risk financial resources. Thus, Unibank will be able to increase its support for the development of the real economy.”

For media inquiries, contact: Ingrid Hagen, Frontclear | +31 20 531 4854 | [email protected]

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