Structured Trade & Commodity Finance

4 days 11-14 Sep 2017, London UK £4,295.00 + VAT* Download brochure Add to basket
4 days 4-7 Dec 2017, Paris France 5,285.00 + VAT* Download brochure Add to basket

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Overview

A comprehensive, practical, skills-based approach to structured trade and commodity finance. On completion of the course you will gain:

  • A comprehensive coverage of the structured approach to trade finance
  • A focus on considerations relating to emerging market trade finance
  • A view of risk and commercial priorities from the perspective of a borrower as well as that of a lender
  • Highly practical exposure to structured commodity trade finance
  • Understanding of importance of documents of title and underlying transportation arrangements
  • Appreciation for role of Insurance products in risk mitigation
  • A view of the application of exchange-traded instruments for price risk management
  • Acquire a global view of Structured Trade Finance practices in the commodities space

Methodology

This course uses a mixture of presentations and many practical examples so you gain a comprehensive understanding of structured trade and commodity finance.

Course objectives

This course is designed to appeal to professionals interested in risk management and financing of physical flows of commodities. The course will be delivered at an intermediate level. Participants are expected to be knowledgeable about trade finance products, letters of credit and international trading practices. Coverage will tilt towards financing of emerging markets business. Case studies and real-life illustrations will be used frequently to emphasise learning points.

 

Who should attend

  • Trade Finance & Treasury professionals
  • Commercial and Merchant Bankers
  • International Traders
  • Risk Managers
  • Commercial lawyers

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

Paris
Srinath Keshavan Nov2014

 

London
Srinath Keshavan Nov2014

 

Venue

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Paris

Centrally located hotel in Paris

This programme takes place on a non-residential basis at a hotel in central Paris. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.

inhouse-learn-more

We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Agendas are localised, please select your preferred location.

Day 1


Focus on Risk

Overview of international trade and commodities
Distinguishing trade finance from other forms of corporate financing
Examining the concept of Risk and as it applies to international trade
Understanding commodity contracts

Risks in international trade as they apply to emerging markets

  • Political risk
  • Performance and operational risks
  • Credit and bank risks
  • Price risk
  • Illegality of contracts

Case studies: set in emerging markets

Financing trade in challenging markets

  • Commodity trading- markets and players
  • Evolution of the trader's business model
  • Structured trade finance and the supply chain
  • Risk analysis of a commodity finance transaction
  • Case study: An example of pre-shipment finance set in Asia

Other considerations

  • Implications of the Basel Capital Accord
  • Rationale for the ‘structured’ approach to trade finance
  • Characteristics of good collateral

Case study exercise: Risk analysis of a pre-finance business proposition set in a challenging environment


Day 2


Focus on Pre-finance

Risk considerations for pre-finance

  • Pre-export to finance grower/producer
  • Production and delivery conditions determining contract outcomes
  • ‘Push’ factor for success of pre-finance
  • What can go wrong?
  • Ownership of the commodity asset
  • Licenses, export quotas. foreign currency controls

  • Pre-payment finance
  • Limited recourse: Absence of obligation to reimburse in full upon producer’s failure to deliver
  • Difference between pre-financing and pre-payment

  • Tolling finance
  • Performance and country risks
  • Protection against non-delivery by processor
  • Security interests of financier
  • Insurance solutions

Case study: Metal smelting and refining

Case study exercise: Medium term pre-financing of a metal smelter

Day 3


Focus on Warehouse finance

Storage of commodities

  • Warehousing considerations
  • The business case for warehousing
  • Use of a bonded warehouse
  • Separating warehouse finance from warehouse receipts finance
  • Problems with pledges over inventory stocks, physical dispossession
  • Nature of a warehouse receipt; is it a document of title or only evidence of receipt?
  • Legal infrastructure required to support warehouse receipt finance

Case study: Distribution of imported grain

Repo finance against commodities traded in a liquid, well-ordered derivative market

Collateral management arrangement
Review of a collateral management agreement (CMA)
Liability of a collateral manager
Case study: Sugar refining/ Petroleum storage

Case study exercise: Designing a credit line for an emerging market borrower

Day4


Subsidiary topics essential for competent handling of commodities trade finance

Alternative financing methods

  • ‘Switch’ trade
  • Clearing currencies and escrow account trade

Case study: Capital goods import

Transport documents

  • Incoterms 2010
  • Flag of vessel; avoiding sanctions
  • Liner & Chartered vessels
  • Obligations of shipper/charterer and vessel owner
  • Loading and discharge of cargo
  • Documents representing goods
  • Documents of Title; title, negotiability and endorsements

Cargo Insurance

  • Principles of marine insurance
  • ICC A/B/C, seller’s risk cover
  • Security over insurances (assignment vs. loss payee)

Political and Credit Risk Insurances

  • Why do banks need political risk insurance cover?
  • Contract frustration
  • Confiscation of assets
  • Covering risk of default in payment by buyer

Price risks

  • OTC versus exchange-traded contracts
  • Link between cash and futures markets
  • Understanding contracts to hedge
  • Price risk management in commodity trade
  • Benefits of hedging for the borrower and lender

Case study: A hedging example

Mishaps in Structured Trade Finance

Course summary and close

Other Courses run by this instructor:

  • Trade Finance products & mechanisms
  • Selling Trade Finance

Course summary and close

Day 1


Focus on Risk

Overview of international trade and commodities
Distinguishing trade finance from other forms of corporate financing
Examining the concept of Risk and as it applies to international trade
Understanding commodity contracts

Risks in international trade as they apply to emerging markets

  • Political risk
  • Performance and operational risks
  • Credit and bank risks
  • Price risk
  • Illegality of contracts

Case studies: set in emerging markets

Financing trade in challenging markets

  • Commodity trading- markets and players
  • Evolution of the trader's business model
  • Structured trade finance and the supply chain
  • Risk analysis of a commodity finance transaction
  • Case study: An example of pre-shipment finance set in Asia

Other considerations

  • Implications of the Basel Capital Accord
  • Rationale for the ‘structured’ approach to trade finance
  • Characteristics of good collateral

Case study exercise: Risk analysis of a pre-finance business proposition set in a challenging environment


Day 2


Focus on Pre-finance

Risk considerations for pre-finance

  • Pre-export to finance grower/producer
  • Production and delivery conditions determining contract outcomes
  • ‘Push’ factor for success of pre-finance
  • What can go wrong?
  • Ownership of the commodity asset
  • Licenses, export quotas. foreign currency controls

  • Pre-payment finance
  • Limited recourse: Absence of obligation to reimburse in full upon producer’s failure to deliver
  • Difference between pre-financing and pre-payment

  • Tolling finance
  • Performance and country risks
  • Protection against non-delivery by processor
  • Security interests of financier
  • Insurance solutions

Case study: Metal smelting and refining

Case study exercise: Medium term pre-financing of a metal smelter

Day 3


Focus on Warehouse finance

Storage of commodities

  • Warehousing considerations
  • The business case for warehousing
  • Use of a bonded warehouse
  • Separating warehouse finance from warehouse receipts finance
  • Problems with pledges over inventory stocks, physical dispossession
  • Nature of a warehouse receipt; is it a document of title or only evidence of receipt?
  • Legal infrastructure required to support warehouse receipt finance

Case study: Distribution of imported grain

Repo finance against commodities traded in a liquid, well-ordered derivative market

Collateral management arrangement
Review of a collateral management agreement (CMA)
Liability of a collateral manager
Case study: Sugar refining/ Petroleum storage

Case study exercise: Designing a credit line for an emerging market borrower

Day4


Subsidiary topics essential for competent handling of commodities trade finance

Alternative financing methods

  • ‘Switch’ trade
  • Clearing currencies and escrow account trade

Case study: Capital goods import

Transport documents

  • Incoterms 2010
  • Flag of vessel; avoiding sanctions
  • Liner & Chartered vessels
  • Obligations of shipper/charterer and vessel owner
  • Loading and discharge of cargo
  • Documents representing goods
  • Documents of Title; title, negotiability and endorsements

Cargo Insurance

  • Principles of marine insurance
  • ICC A/B/C, seller’s risk cover
  • Security over insurances (assignment vs. loss payee)

Political and Credit Risk Insurances

  • Why do banks need political risk insurance cover?
  • Contract frustration
  • Confiscation of assets
  • Covering risk of default in payment by buyer

Price risks

  • OTC versus exchange-traded contracts
  • Link between cash and futures markets
  • Understanding contracts to hedge
  • Price risk management in commodity trade
  • Benefits of hedging for the borrower and lender

Case study: A hedging example

Mishaps in Structured Trade Finance

Course summary and close

Other Courses run by this instructor:

  • Trade Finance products & mechanisms
  • Selling Trade Finance
Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product