Foreign Currency Loan Structures

Leverage an Additional Source of Funding

Foreign Currency Loan Structures

When managing your global business, you may need to obtain financing for acquisitions, capital investment or working capital that is denominated in a currency other than U.S. dollars. A foreign currency loan provides a natural hedge on foreign assets and reduces cross-border funding transactions.

PNC can provide U.S. dollar-functional companies and their foreign subsidiaries with short- and long-term foreign currency loans. These loans are made in freely convertible currencies with the same flexibility as a domestic loan, using a competitive foreign currency base rate.

 

Foreign Currency Loans

  • Provide a natural hedge to your company’s foreign assets by creating a matched liability against a foreign asset.
  • Allow for a single source of funding, eliminating the need for multiple credit lines with foreign-based banks.
  • Offer loan rates that are either fixed or floating to match your desired capital structure.
  • Integrate with interest rate caps, collars or swaps to more effectively manage interest rate risk and currency fluctuations.

Alternatives to Foreign Exchange Loans

Foreign exchange swap — Allows you to fund an inter-company loan on a hedged basis using a spot and forward contract.

Cross-currency swap — Allows you to fund a loan in one currency and pay principal and interest in another currency, while still protecting you from currency and interest rate fluctuations.

Foreign Exchange

PNC offers a full range of FX services

Reference Materials

Foreign Currency Financing Product Sheet

Related Resources

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PNC's Foreign Exchange Sales and Trading Desks

Atlanta1-855-852-4700

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Denver1-844-763-0006

Detroit1-800-362-1066

Houston1-713-345-1580

Indianapolis1-800-622-7410

Los Angeles: 1-833-540-1286

Milwaukee: 1-844-290-1442

Philadelphia: 1-888-627-8703

Pittsburgh1-800-723-9106

San Francisco1-888-891-5265

Washington, D.C.: 1-877-856-6957