Hello Experts
How do we structure principal only currency swap in SAP. I can see product types for Interest rate swaps & cross currency interest rate swaps. There is no product type for principal only swap though.
Unlike IRS, in POS only principal amounts would be swapped. Our requirement is like this.
We have to repay principal on a loan in currency USD 1 year down the line. To protect against the currency fluctuations on principal front, we would enter into a POS with a bank whereby we would receive the foreign currency loan amount. In return, we would pay an equivalent amount in the local currency, which is INR.
Does anybody here have experience in structuring such deals in TRM? Any help in this regard would be deeply appreciated.
Thanks
Pawan