Definitions for "Back-to-back loan"
A form of medium-to long-term financing by which a UK company, for example, may borrow foreign currency and at the same time purchase UK government bonds of equal value and maturity, or deposit an equal amount of sterling in a deposit account.
an arrangement in which two companies in different countries borrow offsetting amounts in each other's currency and each repays it at a specified future date in its domestic currency. Such a loan, often between a company and its foreign subsidiary, eliminates the risk of loss from exchange rate fluctuations.
Operations whereby a loan is made in one currency in one country against a loan in another currency in another country.