Structured Trade and Commodity Finance
DATEVENUE
March 12th-14th 2018

May 14th-16th 2018

August 20th-22nd 2018

London

Shanghai

Geneva

Course Overview

Our goal is that, aware of contemporary and advanced trade finance mechanics and structures as utilized in the main financial centres, attending delegates will be able to identify trade finance opportunities within their own markets and utilize these structures for the benefit of their own client base whilst being aware of all the risk-related issues involved in these products.

This is a highly practical, intensive and multi-disciplinary Course, designed to equip today’s financiers and executives with the templates and practicalities of real deals in and with the Emerging Markets. Covering every contemporary product and risk situations we move from dialogue to real case studies to group workshops and presentations to ensure that you can not only compete in the new deals on the market but also combine, innovate, originate and package deals and get them safely sold both internally and externally.

 

What will we Learn?

  • An understanding of the ways in which traditional products such as Documentary Collections, Letters of Credit, Guarantees and Standby L/Cs, Transaction Based, Asset-Backed Lending and PRI allow for further financing opportunities and risk mitigation through a thorough understanding of the practical mechanics of each product, moving through practical case study based examples to advanced generic sub-types.
  • Understanding and being able to communicate Pre-Finance, Transactional and Securitisation-based deals and to effectively solve issues in this financing channel as well as structuring multi-product solutions in practical situations, particularly in business being conducted between in the Global Emerging Markets of Hong Kong, Asia and the Pacific Region.
  • Being able to apply the differences between the key concepts of product risk, operational risk, sovereign risk, bank risk as well as financial risk in reaching a solution.
  • To be aware and to utilise in practise all ICC regulations and contemporary trade finance structures and current issues and documentation issues to ensure a timely and market driven solution to delegates and clients on a global basis.

 

Who Should Attend?

  • Junior-Mid level professionals in Corporate Banking
  • Junior, mid and senior level professionals in trade finance
  • Junior-Mid level professionals in Commercial Banking
  • Junior-Mid level professionals in Corporate Credit
  • SVPs, VPs, Senior Managers and Relationship Managers
  • Managers with at least 3 years of relevant experience

Day 1

Session 1 – Letters of Credit and Trade Finance Overview

  • The Geo-Political Reality of Oil, Risk and Trade Finance.
  • A Mechanics overview of all potential contracts in a L/C. Applicant/Issuing Bank,
    Issuing Bank/Advising and/or Confirming Bank, Applicant / Beneficiary.
  • How the Risk is shared in a L/C. (Analysis of Oil L/C) Who takes the most risk
    and the transactional nature of risk?.
  • Sharing Risk in a Chinese (Importing) Oil Contract for a major buyer.

Session 2 – L/C Variants in Practice

  • How Deferred Payment Letters of Credit Work, their Mechanics and Discounting.
    Comparing Standby L/C and Deferred Payment L/C. (Japan, Malaysia).
  • New Uses for Standby L/C. Pre-Finance L/Cs their mechanics and risks.
  • The utilization of non-operative clauses as a risk mitigation technique, (Highest Risk Countries).
  • Back to Back L/C Financing. Securities, Mechanics and Pitfalls and Countertrade L/Cs. (Coal/
    Coke. Metallurgical Coke, China, India).
  • Mechanics of Receivable Financing (Single and Multi-tranche). Contemporary Models.
    Further mechanics of Discounted Products.
  • The value of receivables and how to enhance values and safety.

Worshop 1: Who takes the most risk in a UAE/French Deferred Payment Oil L/C and why.

Session 3 – Understanding Documents. Appraisal of:

  • Bills of Exchange, Promissory Notes and Payment Undertakings.
  • Warehouse Receipts and Warrants and their negotiable and quasi- negotiable characteristics. All
    transport documents including Bills of Lading, Mate’s Receipts, Multi- Modal Transport Documents
    and Mate’s Receipts.
  • What really happened in Quindong? Transport Documentation and Incoterms. Contracts of supply,
    tender and performance.
  • Silo Receipts and Emerging Market Inventory Documentation. Guarantees, Letters of Comfort and
    Standbys compared.

Evening Reading for the Trafitrade Group Workshop

Day 2

Session 4 – Practical Structured Tolling & Pre-Export Finance

  • An advanced analysis of securitization and copper, steel and oil, commonalities and risk
    adjustments. (China case studies).
  • Defining the risk point of entry in pre-shipment finance. Risk entry point and Deal Origination – Risk Mitigation.
  • A comparison of Back to Back, Reverse Factoring, Working Capital and Pre-finance requirements
    for a major steel trader. (Singapore).
  • A Structured, Non-L/C solution for revolving uranium major contract. (Australian-Asia Corridor.
  • Documents in Tolling Deals from a value/security perspective. Originating safe Tolling
    Deals and Process Financing. (Ethyl Alcohol).

Session 5 – Workshop 2

Worshop 2: TRAFITRADE. With a consignment of Oil at Sea for an emerging market Country, delegates define the main risks and mitigate them. The Oil purchaser is using Warehoused Coffee and securities and payment. Delegates evaluate the main risk and how to mitigate that risk.

Session 6 – Internal Marketing Communicating Transactional deals to
Credit Committees

Often, good, bankable deals can be “lost in Translation” as they make their way through the Credit Committee structure, particularly transactional deals involving energy traders to committees more used to analyzing balance sheets for risk answers.

This exercise starts by looking at a Tungsten/Iron Ore Contract (Hong Kong Buyers), moves through Risk
Location, Identification and Mitigation to a “Spreadsheet” Risk model, which will satisfy the toughest decision makers.

Day 3

Session 7 – Understanding the Generics in New Structured Finance

  • Buy Back Take or Pay solutions. Escrow Account Mechanics. Offsets (Direct and
    Indirect). Tolling and Product Sharing Agreements, a full risk analysis.
  • Swaps and Switch Trading. Linked Countertrades. Taking the “Bad” Debt and utilization of the
    Secondary Markets.

Session 8 – Bank Vs Country Risk and Political Risk Insurance

  • The Price/Success/Quality GRID construction. Pepper. How to mitigate and pre-empt
    quality issues.
  • What is Political Risk? Pricing Political Risk in the Primary and Secondary Markets. Real and
    “Creeping” Expropriation. Political Risk Science v Supply & Demand.
  • Trade Structured Solutions in Oil and Energy Products. Political Risk Entry points.

Session 9 – Spotlight on Commodities

  • Purchasing a Bankrupt Palm Oil Processing Factory in Nigeria for Malaysia with all
    documentation. The Mechanics of Secondary Market and Mezzanine Finance.
  • Mechanics of Forfaiting and contemporary models. Palm Oil from Malaysia to India (The Bhel
    deal) for Hydro Products via African.
  • Analyzing Mines for Countertrade deals. Selling to High Risk Country models including Diesel
    Engines to Iraq and Used Vegetable Oil for Bio-Diesel.
  • The Cotton Exchange and Value Chain. Cotton for textiles, fertilizers for Agri-Products.
  • Originating and Structuring new Countertrade, Buy-Back and Product/Risk sharing
    deals. Escrows and Evidence Accounts.

Session 10 – Group Workshop

Worshop: Having been offered some Multi-Lateral Agency help, ECA input and Secondary Market possibilities, delegates structure the export of capital equipment into Papua New Guinea via Australia)

Session 11 – Inventory and Storage Financing

  • The East/West Oil divide and storage facilities. Financing Oil shipments. (From
    Singapore, Indonesia and Caribbean).
  • Contemporary Case Studies of Storage Finance and its effect upon pricing.

End of Programme

For a detailed profile of the course director, please fill in a brochure request.

Number of DelegatesPrice per Delegate
1$3000USD
2$2750USD
3$2500USD

Early Bird rates are offered up to 4 weeks before the commencement of the programme. Please get in touch for more details

The venue of the training is always in a centrally located 4-5 star hotel. The venue is confirmed 2 weeks before the programme once registration is closed and we know the exact number of delegates attending. We have exclusive rates with the hotel, if you require accommodation during the programme.

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Testimonials

‘A great training, with each topic covered in great depth. The handouts and materials are excellent’

 

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