IFBH (HKG:6603) said its Singapore unit entered into foreign exchange contracts with Citibank to hedge currency risks involving the US dollar, Thai baht, and Singapore dollar, according to a Thursday Hong Kong stock exchange filing.

Shares of the beverage maker fell over 4% in Friday morning trade.

Under the agreements, IFB Singapore may conduct FX transactions with Citibank up to a notional amount of about $10 million, subject to the bank's internal approvals.

The subsidiary will place $1 million in cash collateral.

The contracts, which cover FX forwards and options, will allow IFB Singapore to manage exposures from sales and purchases denominated in foreign currencies, the company said.