Religare Health says it hedged against foreign currency risk

Religare Health Trust, which started trading in Singapore on Oct. 19, said it has hedged against foreign currency risks.

“The trust has put in place forward contracts to hedge its Indian rupee cash flows into Singapore dollar thereby mitigating the currency risk and consequent risk to distribution per unit,” it said in an e-mailed statement today.

The fragmented health market in India also offers opportunities as it seeks acquisitions in Asia Pacific and emerging markets, the trust said.

Religare, backed by hospitals of India’s second-biggest hospital company, started trading its shares in the Singapore dollar, the best performer among Asia’s 11 most-actively traded currencies. The Singapore dollar has risen 6.1% this year, compared with the rupee’s 0.9% decline, the third- worst performer.

Phillip Securities said in an Oct. 16 report that foreign exchange risk is the main concern for the trust. The brokerage also said Religare has forward contracts to hedge the currency for the next two years.

The trust, backed by hospitals of Fortis Healthcare, jumped 3.1% to 83.5 cents at the close in Singapore today, erasing an earlier loss of as much as 6.2%. The benchmark Singapore Straits Times Index dropped 0.1%. The stock slumped 10% in its trading debut on Oct. 19.