Deutsche executes Islamic profit rate swap of over $500 million
Deutsche Bank in October closed an Islamic profit rate collar trade with Dubai Islamic Bank (DIB). The deal was more than $500 million in notional and is the largest such trade done in the Islamic markets, says the German bank.
The hedging structure required more flexibility than a vanilla Islamic profit rate swap (PRS). Deutsche Bank and DIB structured an off-balance-sheet solution based on an Islamic PRS with caps and floors.
DIB treasurer Mohammed Saleem says: "We had a specific risk that
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