Cross Currency Swap Structure
Grupo Hacienda
Mexico “BBB+” Rating
Net Cost = 7.60% +
LIBOR
7.50%
LIBOR
7.50%
BancZero
0.10%
LIBOR
Formento Economico
Mexicano “A-” Rated
Net Cost = LIBOR + 6.75%
LIBOR - 0.75%
LIBOR
+
0.10%
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Bank of America
(Floating rate)
$100 Million loan
15-year maturity
Grupo rate for Fixed rate money = 7.60%
Formento rate for Fixed rate money = 6.75%
0.85%
Divide the difference in half = 0.425%
Grupo’s cost of Fixed rate money = 7.275%
Eurobond
$100 million loan
15-year maturity