Bharat Petroleum Company Ltd has entered into a swap transaction worth Rs 100 crore (Rs 1 billion), making it the first interest rate derivative deal among the public sector entities in India.

BPCL invited bids for the interest rate swap for a notional amount of Rs 100 crore for leading bankers and concluded the transaction with Citigroup for the full amount, Citigroup said on Monday.

"We intend to manage our exposure to foreign exchange and interest rate risks to comply with global best practice and by using hedging products approved by the Reserve Bank of India," BPCL deputy general manager (treasury) P Balasubramanian said.