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Wholesale Banking

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. 

 

Why choose ING's deal-contingent hedging product

 

Strong sector expertise

Global execution capabilities

One-stop-shop for all your hedges

What can deal-contingent hedging do for your company

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 accquisation
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.

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.

Unlock better outcomes with deal-contingent hedging

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. 

Why partner with us

Our purpose is to empower people to stay a step ahead in life and in business. So whatever your financial needs, whether you are looking to expand and want strategic advice, or just want to make your day-to-day banking more efficient, we are here to support your business ambitions.

  • Serving corporate clients and financial institutions in over 35 countries.
  • We pair local and global insight with sector knowledge with financial expertise.
  • We are ranked as a leader in sustainability and we are included in the FTSE4Good Index.
  • Global Finance

    Best bank for sustainable infrastructure finance

    2024
  • Environmental Finance

    Lead manager of the year for social bonds and sustainability bonds - financial institution

    2024
  • Global Capital

    Most impressive investment bank for corporate ESG capital markets and advice

    2023