Luminor Markets

Currency Exchange

We offer

Trading all currencies available at the Luminor.
Improved rate for any amounts above EUR 5,000 or equivalent in other currency.

Apply for Currency Exchange

Good to know

Here provided rates are indicative. Live non-cash (currency exchange in bank accounts) currency rates are available: log in to internet bank or visit us in a Customer Service Center, call +370 5 239 3444 in advance.
For larger transactions, we will apply improved rates for you automatically.
Non‑cash currency exchange transactions are unavailable on weekends and public holidays as well as between 00:00 and 03:00 on business days. From Mondays to Thursdays after 17:00, on Fridays and the days before public holidays after 16:00 the increased foreign exchange margin is applied.

Service conditions

Bank account in Luminor.
No separate agreement is signed, the request of currency exchange is submitted via Internet Bank.

Financial Risk management

What does it involve?

Financial Risk Management involves the process of identifying risks, analyzing them and selecting instruments which could help to reduce the negative impact of market risks on the financial health of the company. Luminor can offer a wide range of instruments which could help to manage currency exchange rates, market interest rates, and commodity price risks.

Foreign Exchange Derivatives

Companies who operate with partners from non-euro countries (import or export) are open to currency rate risk. To reduce currency rate risk Luminor offers FX Forward or FX swap.

FX Forward example

Company has signed a contract to export goods to a trading partner who is located in non-euro country which currency is USD.
According to the contract the company agrees to receive USD payment with 3 months delay.
In order to protect itself against adverse movements in EUR/USD exchange rate and ensure predictable cash flows and income the company as soon as the contract is signed agrees with to sell USD at a pre-determined rate at a specific future date.

FX Swap example

The company operates both with EUR and USD.
The company expects USD incoming payment in 1 month time. At the same time one urgent USD payment needs to be effected today.
In order to protect itself against negative effects of EUR / USD rate fluctuations the company enters into a FX swap agreement with Luminor whereby it buys from the Luminor USD now and sells them back after 1 month.
Both payment dates and FX rates are pre-agreed with Luminor and known in advance.

Interest Rate Derivatives

Luminor can help to manage company`s interest rate risk with the Interest Rate Swaps (IRS) or Interest Rate Options. Suitable for companies that have existing or potential long-term exposure to changes of interest rates via borrowings, investments, etc.

Interest Rate Swap example

The company has taken from Luminor a long-term loan with a floating interest rate based on a 3 months Euribor.
In order to protect itself from the rise of Euribor the company enters into an interest rate swap (IRS) transaction with Luminor where it agrees to pay fixed interest rate against 3 months floating Euribor.
Luminor will sign with a customer separate loan and derivatives (IRS) agreements. Loan and IRS derivative will be independent transactions, we will try to tailor IRS terms and conditions (amortization, payment dates, etc) as much as possible to be in line with loan terms and conditions.
Instead of IRS, the company may look for other hedge solutions – Interest rate Options.

Commodities

Luminor offers hedging solutions - swaps for a wide range of commodities (energy, oil, metal, agriculture) to help customers manage price risks and stabilize costs.

Suitable for companies whose costs and/or income to a great extent depend on the fluctuations in the prices of commodities tradable on the financial markets. Based on customers’ requirements Luminor is flexible to evaluate and implement new commodities in a short period of time.

Commodity swap example:

The producer of good in the production process consumes natural gas and diesel. Natural gas and diesel are bought from a supplier at floating market prices.
If the prices for gas and/ or diesel rise the company incur additional costs which may negatively impact the price of manufactured products.
In order to make cash flows predictable and the prices for manufactured goods competitive the company enters into commodity swap deal with a bank and agrees to pay fixed price for a gas and / or diesel for a specific period of time (for example, year) against floating index.
In addition, sometimes it is possible to benefit from price backwardation when prices for future commodity contracts are lower compared to spot prices for physical goods in the market.

Service conditions

In order to conclude a transaction, company needs a current account in Luminor.
Company should have Legal Entity Identifier (LEI code).
Agreement for derivatives transactions should be signed.
Derivatives limit and collateral conditions should be approved.

Capital Markets

Securities origination

We offer:

Bond origination.
Equity origination.

Purpose:

Bonds are one of the sources of borrowed capital for company growth. Make use of funding source diversification.
As well as standing company, you may consider issuing shares to finance further company growth.

Risks:

Borrowing in capital markets or having your shares listed requires financial discipline and transparency. Adherence to financial covenants and reporting standards is key to maintaining trust of market participants.

Service conditions:

Service agreement should be signed.
In order to conclude a transaction, you need a securities account with Luminor.

Bonds Trading

Luminor Fixed Income Desk offers comprehensive access to both the primary and secondary bond markets, catering specifically to large corporations and institutional clients.

We offer:

Access to a diverse range of bonds in both primary and secondary markets.
Competitive pricing and liquidity to meet your trading needs.

Purpose:

Bonds generate steady income through regular interest payments.
Lower-risk securities help preserve capital and are a good alternative to deposits.
Diversification of investment portfolios and reduces overall risk.

Risks:

Interest rate risk: Bond prices may fall if interest rates rise.
Credit risk: The issuer may default on interest or principal payments.
Market risk: Bond prices can be affected by market conditions and economic factors.
Liquidity risk: Some bonds may be difficult to sell quickly without a significant price concession

Service conditions:

Service agreement should be signed.
Company should have Legal Entity Identifier (LEI code).
Securities account should be opened.

Disclaimer:

All investments entail risks and may result in both profits and losses. Investors should carefully consider their financial situation in order to understand the risks involved and ensure the suitability of their situation prior to making any investment, divestment, or entering into any transaction.

You are responsible for your investment decisions; therefore, before making a decision you should get acquainted with all investor protection documents, including, but not limited to, a description of financial instruments and related risks, and other investor protection documents available here.

The returns of previous periods are not an indication of future returns and cannot be the only factor considered when selecting an investment. Positive returns in the past do not mean positive returns in the future. The value of a financial instrument may go up as well as down: as an investor, you may not get the invested amount back and income is not guaranteed.

Changes in exchange rates may have an impact on investments made in foreign currencies. Taxation rates and grounds as well as tax exemptions may also change. All of these changes may not be favorable to you.

No part of the information submitted here constitutes an offer to buy or sell any currency, product or financial instrument, make an investment or participate in a specific trading strategy.

Information contained herein is not and cannot be regarded as a personal recommendation, instruction or an offer to buy, hold or sell investment instruments. Unless explicitly stated otherwise, the information given on the website is informative only and may not be interpreted as business, financial, investment, hedging, legal, regulative, taxation or accounting advice, a recommendation or a trading idea or any other encouragement to act, invest or divest in a certain manner.

Luminor cannot be held liable for losses caused by any investment and/or the use or interpretation of the information herein.