Deal-contingent hedging
Eliminate market risks with additional peace of mind: if the underlying transactions did not complete, the hedge disappears without any market value to settle. ING leverages expertise across the whole bank to underwrite non-completion risks so that you can pre-hedge currency or interest rates, while avoiding upfront fees or potential losses.
Strong sector expertise
Global execution capabilities
One-stop-shop for all your hedges
A solution built for you
Highly tailored solutions
Every DCH includes careful assessment of deal likelihood and consideration of timeframes, volatility and the size and tenor of the hedge.
Comprehensive partner
As a lending bank, ING can provide both the DCH and long-term hedges.
International capabilities
Besides our strong footprints in our core markets (EUR and USD), we also have excellent track records in Central & Eastern Europe currencies and AUD.
Certainty when it matters
Non-recourse finance
For companies involved in financing infrastructure, renewable energy, fibre roll-out etc., deal-contingent hedging can help ensure predictable costs and cash flows by putting hedges in place before obtaining all the permits needed to achieve financial close.
Mergers and acquisition
Buyers and sellers can hedge currency fluctuations before regulatory approvals are secured, taking the completion risk out of the foreign exchange or interest rate hedges.
Unlock better outcomes
Improved deal economics
The ability to lock in future interest expense or foreign currency payments well ahead of financial close can result in much more favourable economic outcomes compared to other hedging instruments.
Enhanced certainty
Visibility on the market rate at completion provides peace of mind — and if the deal doesn’t materialise, the transaction disappears without any market value settlement. There’s also no upfront premium to be paid.
Easy to explain
The mechanics of a DCH are complex for the underwriting bank, but it’s a simple concept for end users and senior decision-makers. ING takes on the hedge and locks in market rates, in exchange for a transparent premium, embedded in the forward price of the foreign exchange or interest rate hedge.
Start protecting your deals today
Contact your ING representative for more information on deal-contingent solutions.