Deutsche signs record sharia collar trade

"As DIB's business has expanded in terms of customers and their sophistication, our need for risk management products has grown too," said Mohammed Saleem, senior vice-president and treasurer at DIB in Dubai.

The $500 million swap includes a cap-and-floor structure, which refines the ability to hedge underlying rate exposures within a range. Traditional Islamic profit-rate swaps combine both fixed and floating rate sharia-compliant instruments to replicate a fixed/floating interest rate swap