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Hedging Advice for £230m debt facility

Interest Rate Hedging

Camden Market – Hedging Advice for £230m debt facility

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Initially, Camden Market had concerns about whether hedging was the right thing for them and if it was right then what type of hedging was suitable.

Mayad Rassam and Abhishek Sachdev from our team met with them to understand their strategy from a property investors perspective rather than simply be guided by what the Financial Markets were pricing.

We then analysed their facility agreement (including all tranches and types of debt totalling £230m). We modelled various hedging structures, analysed them for cash flow and mark-to market movement throughout the life of the loan. These were then incorporated into the clients own investment analysis models. Working with the client we then refined the hedging strategy to provide them with the exact fit that they were looking for.

To help facilitate the process we then had direct dealings with the banks treasury department in agreeing the documentation, negotiating the bank profit and doing a dry run of the trade. Finally, we executed the trade when the client was ready to enter into the hedging.

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Nadia has a degree in Business Management and a Diploma for Financial Advisers (Level 4). She has ten years of experience in financial services. This includes FSA regulated adviser roles in HSBC, Halifax and Nationwide. As senior manager at Vedanta Nadia is responsible for managing the office, client contact and marketing for the business.