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Provided by: Ripple Training Structured Commodity Finance Techniques Applications for Successful Financing ArrangementsImport / Export |
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Training
Provided by Ripple Training
This workshop was designed for arrangers and borrowers. It provides a comprehensive and practical group of techniques of structured commodity finance transactions, such as export receivables-backed financing, prepayments, inventory financing and counter-trade - and its applications within the range of financing alternatives available to the commodity sector.
This workshop teaches how structured commodity finance deals can be arranged to benefit from lower-cost, longer-tenor and more secured financing arrangements.
Starting with the fundamental tenets of trade and commodity finance, this workshop teaches:
- How to identify, value and mitigate risk focusing on due diligence
- Letters of credit, forfaiting and factoring
- Structuring techniques including inventory financing, pre-export financing, prepayments and export receivables
- Third-party credit enhancement and its provision through insurance and guarantees to tackle market, credit and political risk
- Implications for structured commodity finance in Islamic banking
- Analysis of the market and service providers including private, governmental and multilateral organisations
This workshop teaches how to deal with both market and political risk, including the use of insurance, guarantees and credit derivatives, together with an analysis of the market and providers of these services including private, governmental and multi-lateral organisations.
Benefits of this Workshop
Teaches the trainees how structured commodity finance deals can be arranged to benefit from lower-cost, longer-tenor and more secured financing arrangements.
Learning Goals
a Understand the commodity export finance context
a Know the techniques of structured commodity finance transactions
a Use the commodity finance techniques and its applications in case studies
Related Jobs or Careers: This workshop was designed for bankers, import and export practitioners and finance managers.
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Structured Commodity Finance Techniques Applications for Successful Financing Arrangements
DAY 1
INTRODUCTION
Evolution of commodity financing
What is structured commodity finance?
PART I: TRADITIONAL TRADE FINANCE 1
INTRODUCTION TO PART I
1. BUILDING BLOCKS OF TRADE FINANCE
Principal payment methods
Basic trade financing instruments
2. MORE ADVANCED INSTRUMENTS AND TECHNIQUES
Tailored letters of credit
Forfaiting and factoring: the fraternal twins
Trade finance in the new economy
3. EVOLUTION OF TRADITIONAL TRADE FINANCE
PART II: TECHNIQUES
INTRODUCTION TO PART II
4. STRUCTURED INVENTORY FINANCING
Principles and background
Basic transaction flows
Term sheet
Benefits of structured inventory financing
Limitations of structured inventory financing
5. STRUCTURED PRE-EXPORT FINANCING
Principles and background
Basic transaction flows
Term sheet
Benefits of structured pre-export financing
Limitations of structured pre-export financing
6. COUNTERTRADE
Existing forms of countertrade
Evaluation of countertrade
7. MORE COMPLEX STRUCTURES
Reinforced structures
Securitisation
Other available flows for structured finance
Balance sheet-enhancing structures
8. DUE DILIGENCE
Components of the marketing cycle
Direct and indirect parties to the transaction
Country/ Political risks
Structural aspects
9. LEGAL ASPECTS
Legal documentation
Legal advice and opinion
10. EVALUATION OF STRUCTURED COMMODITY FINANCE TECHNIQUES
Providing attractive financing in difficult situations
Supporting access to longer-term financing
Improving commercial operations and international trade
Improving emerging market economies
DAY 2
PART III: THIRD-PARTY CREDIT ENHANCEMENT: INSURANCE AND GUARANTEES
INTRODUCTION TO PART III
11. INSURANCE
Political risk insurance
Credit risk insurance
Evaluation of political and credit risk insurance
12. COMMODITY PRICE RISK MANAGEMENT
Fixing export prices or establishing floors
Linking interest rates to commodity prices
Subsidising interest rates
Evaluation of commodity price risk management
13. GUARANTEES
Contractual guarantees
Credit guarantees
Wrapping guarantees
Credit derivatives
Evaluation of guarantees
14. PROVIDERS OF INSURANCE AND GUARANTEES
Private insurance market
Export credit agencies
Other non-commercial providers
Cooperation between providers of insurance and guarantees
15. INSURANCE AND GUARANTEES: CONCLUSIONS
DAY 3
PART IV: APPLICATIONS
INTRODUCTION TO PART IV
16. FINANCING NEEDS OF THE COMMODITY SECTOR
Debt versus Equity Funding
Short-term versus Longer-term Financing
Corporate versus Transaction-based Financing
Type of borrowers
17. APPLICABLE COMMODITIES
Hard commodities (natural resources)
Soft commodities (agricultural products)
18. COMMERCIAL PARTNERS
Suppliers of capital goods and services
Commodity trading counterparties
Evaluation of commercial partners as financiers
19. DEBT FROM BANKS AND THE CAPITAL MARKETS
SCF bank loans and facilities
SCF capital market debt
20. EQUITY
Types of equity
Public companies in the commodities sector
Equity investors in the commodities sector
21. NON-COMMERCIAL SOURCES OF FINANCING AND SUPPORT
Multilateral development banks and finance institutions
Other forms of government support
Evaluation of non-commercial financiers
22. GEOGRAPHICAL SPREAD
Russia and other former CIS countries
East Asia
Middle East
Latin America
Africa
23. ISLAMIC BANKING
General principles
Use in commodity financing
24. APPLICATIONS: CONCLUSIONS
INTRODUCTION
Evolution of commodity financing
What is structured commodity finance?
PART I: TRADITIONAL TRADE FINANCE 1
INTRODUCTION TO PART I
1. BUILDING BLOCKS OF TRADE FINANCE
Principal payment methods
Basic trade financing instruments
2. MORE ADVANCED INSTRUMENTS AND TECHNIQUES
Tailored letters of credit
Forfaiting and factoring: the fraternal twins
Trade finance in the new economy
3. EVOLUTION OF TRADITIONAL TRADE FINANCE
PART II: TECHNIQUES
INTRODUCTION TO PART II
4. STRUCTURED INVENTORY FINANCING
Principles and background
Basic transaction flows
Term sheet
Benefits of structured inventory financing
Limitations of structured inventory financing
5. STRUCTURED PRE-EXPORT FINANCING
Principles and background
Basic transaction flows
Term sheet
Benefits of structured pre-export financing
Limitations of structured pre-export financing
6. COUNTERTRADE
Existing forms of countertrade
Evaluation of countertrade
7. MORE COMPLEX STRUCTURES
Reinforced structures
Securitisation
Other available flows for structured finance
Balance sheet-enhancing structures
8. DUE DILIGENCE
Components of the marketing cycle
Direct and indirect parties to the transaction
Country/ Political risks
Structural aspects
9. LEGAL ASPECTS
Legal documentation
Legal advice and opinion
10. EVALUATION OF STRUCTURED COMMODITY FINANCE TECHNIQUES
Providing attractive financing in difficult situations
Supporting access to longer-term financing
Improving commercial operations and international trade
Improving emerging market economies
DAY 2
PART III: THIRD-PARTY CREDIT ENHANCEMENT: INSURANCE AND GUARANTEES
INTRODUCTION TO PART III
11. INSURANCE
Political risk insurance
Credit risk insurance
Evaluation of political and credit risk insurance
12. COMMODITY PRICE RISK MANAGEMENT
Fixing export prices or establishing floors
Linking interest rates to commodity prices
Subsidising interest rates
Evaluation of commodity price risk management
13. GUARANTEES
Contractual guarantees
Credit guarantees
Wrapping guarantees
Credit derivatives
Evaluation of guarantees
14. PROVIDERS OF INSURANCE AND GUARANTEES
Private insurance market
Export credit agencies
Other non-commercial providers
Cooperation between providers of insurance and guarantees
15. INSURANCE AND GUARANTEES: CONCLUSIONS
DAY 3
PART IV: APPLICATIONS
INTRODUCTION TO PART IV
16. FINANCING NEEDS OF THE COMMODITY SECTOR
Debt versus Equity Funding
Short-term versus Longer-term Financing
Corporate versus Transaction-based Financing
Type of borrowers
17. APPLICABLE COMMODITIES
Hard commodities (natural resources)
Soft commodities (agricultural products)
18. COMMERCIAL PARTNERS
Suppliers of capital goods and services
Commodity trading counterparties
Evaluation of commercial partners as financiers
19. DEBT FROM BANKS AND THE CAPITAL MARKETS
SCF bank loans and facilities
SCF capital market debt
20. EQUITY
Types of equity
Public companies in the commodities sector
Equity investors in the commodities sector
21. NON-COMMERCIAL SOURCES OF FINANCING AND SUPPORT
Multilateral development banks and finance institutions
Other forms of government support
Evaluation of non-commercial financiers
22. GEOGRAPHICAL SPREAD
Russia and other former CIS countries
East Asia
Middle East
Latin America
Africa
23. ISLAMIC BANKING
General principles
Use in commodity financing
24. APPLICATIONS: CONCLUSIONS
About The Training Provider: Ripple Training
Ripple Training - The major growth economies across the globe are all within the emerging market environment. Favourable exchange rates, market size, lower manufacturing and labour costs are all contributing factors for these markets returning the current growth rates. In order for this to continue private and public sector organizations need to ensure that they are geared for continued growth and this can only...
