Oger Telecom, a leading emerging markets telecommunications operator, has selected SuperDerivatives (SD), the derivatives benchmark, to advise on its multi-asset derivatives exposure and to enable compliance with regulatory laws.
Oger Telecom, based in Dubai, required a service that would enable it to hedge the exposure of its loans to volatility of interest rates and fluctuations in the currency markets across the world. The company also needed to be able to measure and report the effectiveness of its hedging practices, as required by Turkish financial regulations.
Oger Telecom is a leading provider of telecommunications services. It operates fixed-line, mobile communications and internet access businesses in Turkey, mobile communications in South Africa, and is a major regional ISP in Saudi Arabia, Lebanon and Jordan.
SD is considered the world’s independent benchmark for pricing and managing derivatives. It is used by many of the world’s largest corporations, as well most of the banks in the world that trade derivatives and numerous hedge funds, brokers, auditors and central banks.
The unique solution provides wide, multi-asset coverage, enhancing the productivity of the organisation’s entire derivatives portfoilio which inspires user confidence by generating transparency.
The SD-IR and SD-FX pricing solutions were chosen by Oger Telecom for their ability to provide real-time, independent pricing for the widest range of interest rates and FX derivatives, from vanilla to the most advanced structures.
This will help the company to pursue the right business opportunities and manage risk associated with its portfolio. In addition, Oger Telecom has deployed SD’s hedging effectiveness reporting service. SD will revalue the company’s derivatives structures, giving the corporate treasury team access to mark-to-market values, in addition to assessing the effectiveness of the hedge using standard accounting tests.
Fatih Ozmen, finance manager, Oger Telecom, comments: “In the current economic climate it is more important than ever to ensure we have the right tool to help us implementing the right hedging policy and to properly value our hedging contracts.
"As an international telecoms company, we operate across borders and currencies and can therefore be affected by a number of factors in the global financial markets. Derivatives provide excellent tools for hedging, provided that we have the necessary armour to shield us from risk – this comes in the form of accurate, independent pricing that gives us the fair market value of our portfolio. SD is in a league of its own when it comes to providing this."
Eyal Dalit, regional sales manager, SD, comments: "The ability to provide hedging effectiveness assessments has enabled SD to provide corporations with a one-stop-shop for pre-trade price discovery, accurate mark-to market and risk management of their portfolios, as well as compliance with various accounting regulations.
"SD is also set apart from competitors for its cost effectiveness. Our web-based Software as a Service solutions use a unique, intelligent open architecture which significantly cuts expenditure when compared to proprietary models, and increases the ease and speed of implementation with existing core systems."
