Forward sale

Forward sale

A method for hedging price risk that involves an agreement between a lender and an investor to sell particular kinds of loans at a specified price and future time.

Forward Sale

1. The sale of a future loan in which the lender (seller) guarantees an investor a certain payment flow and interest rate. This is usually done to hedge against the investor's future foreign exchange risk and interest rate risk.

2. In Islamic banking, the purchase of and payment for a specified good or service at a price usually lower than market value, with delivery deferred until a set future date. A bank buys a commodity before it is grown or manufactured, then may re-sell it to a third party in order to turn a profit on the transaction. This is used as a form of financing for farms and businesses, and is governed by a salam contract.
References in periodicals archive ?
HL1 17 LP expects to enter into a forward sale agreement with Morgan Stanley (the 'forward counterparty') with respect to 16,960,717 common shares.
Also, the company is issuing and selling 35,000,000 shares directly to the underwriters at closing and the underwriters are purchasing 65,000,000 shares related to forward sale agreements.
The stock offering consists of 2m shares offered directly by the Company and 12m shares offered on a forward basis in connection with the forward sale agreement.
(TAP) -- The House of People's Representatives (HPR) adopted Tuesday a draft law on the forward sale agreement to help finance the construction and equipment of two regional hospitals in the delegations of Thala (Kasserine governorate) and Dahmani (El Kef governorate).
Davis Polk advised the dealer in connection with the execution of forward sale agreements on 9,359,103 shares of Xcel Energy Inc.s common stock (NASDAQ: XEL) in connection with an SEC-registered offering of an equal number of shares.
It will be issuing and selling 4,000,000 common shares directly to the underwriters at closing and the underwriters will purchase 6,000,000 common shares related to the forward sale agreement described below.
Nordea and Blackstone have entered into a forward sale agreement for the sale of Nordea's remaining 20% stake over the near to medium term.
The company will be issuing and selling 4M common shares directly to the underwriters at closing and the underwriters will purchase 6M common shares related to the forward sale agreement described below.
In connection with the offering, Entergy entered into forward sale agreements with each of Morgan Stanley & Co.
(LSE: PLAZ) (TASE: PLAZ) has terminated negotiations with a third party regarding a possible forward sale of Belgrade Plaza in Serbia, the company said.
Perth, Australia, Dec 21, 2010 - (ABN Newswire) - Kingsrose Mining Limited (ASX:KRM) is pleased to announce that it has successfully arranged a prepaid silver forward sale transaction with Credit Suisse International raising A$13 million and allowing Kingsrose to repay various outstanding loans totalling A$10 million.
The Bruce Golding led administration has been slapped with another massive bill arising from the controversial deal for the forward sale of bauxite, reports The Jamaica Gleaner (Nov.

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