This Euromoney Training course covers all aspects of international trade and commodity finance from a practical viewpoint. Heavy emphasis is placed upon risk assessment and problem solving techniques, through a clear understanding of a customer's trade cycle. Whilst each of the banking products is dealt with in detail, great attention is paid to the effective and appropriate use of these mechanisms in meeting the customer's needs, with a view to generating remunerative and controllable business for the bank and the customer. The course is highly interactive and centres around the use of a variety of case studies, mostly based upon live files.

How this course will assist you?

By attending this interactive and highly practical 5–day training course you will learn best practices for:

• Structuring successful trade deals and getting them approved.
• Understanding all contractual obligations in trade finance.
• Mastering facility and back-to-back structures.
• Supporting the exporter: guarantees and forfeiting including the legal aspects.
• Learning the structures, products, developments and risk management in commodity trade finance.
• Managing the recent regulatory developments affecting trade finance.

 Who should attend?

• Trade, Export, Commodity Finance Executives
• Import, Export Managers
• Corporate Relationship Managers
• Staff within Credit and Risk Management Functions
• Relationship Managers within Financial Institutions
• Senior Operations Personnel

Day 1

Critical Issues in Trade Finance Today
• Trade finance – an alternative to balance sheet lending.
• The impact of Incoterms in the trading environment.

Case study: Interactive consideration of contractual needs.

Understanding and using bills of exchange / promissory notes
• Bill discounting - accelerating the cashflow - the value of avalised bills.
• International trade documentation focus on documents of title.
• Documentation and the internet - ‘BOLERO’.
• Payment terms - appreciating the customer’s risk awareness.
• Documentary collections - understanding the mechanics.

Case study: Risk and control features in documentary collections.

Effective use of collections for short term finance

Day 2

Documentary Credits
• Basic operations and risk appreciation.
• Irrevocable, unconfirmed and confirmed credits.
• Sight, term, negotiation and deferred payment credits.

Case study: Risk assessment in a documentary credit facility.

• Discounting and advancing funds.
• Silent confirmations.
• Syndicated credits.
• Revolving credits.

Guest Speaker Presentation

Changes and Challenges in, and Costs and Consequences of the New Regulations
• An overview of the changing face of regulation: Basel, EU and UK.
• An analysis on the latest papers and their likely impact: capital, liquidity, accounting and governance.
• What steps will banks have to take to comply with the evolving regulatory demands.
Irving Henry, Director, Prudential Capital and Risk, British Bankers' Association (BBA).

Controlling Credit Exposure in Documentary Credits
• Formulating a limit.

Case study: Calculating the size of a trade finance facility.

Back-to-Back and Transferable Credits
• Basic mechanics and structures.
• Risk and control features.

Case study: Structuring a back to back facility.

Day 3

Supporting Export Contracts
• The use of bonds, guarantees and standby credits.
• Bid, performance advance payment and retention bonds.
• Legal jurisdiction and expiry date issues.
• Opportunity spotting.

Case study: Interactive interviews with an exporter.

The Forfaiting Market
• Styles and structures.
• Discounting mechanisms.
• The secondary bill market.
• The value of without recourse financing.

Guest Speaker Presentation

The Law Relating to Letters of Guarantee
• The Autonomy Principle.
• Procuring the issue of foreign guarantees and dealing with correspondent banks.
• Litigation and the fraud exception.
• Methods of preventing the issuing bank from paying the beneficiary.
Shane Gleghorn, Partner, Financial Disputes, Taylor Wessing.

Getting a Deal Approved
• Understanding and explaining the trade cycle.
• The use of time lines.
• Assessing and appreciating funding gaps.

Case study: Interactive interviews with a trader.

Factoring and Invoice Discounting
• Financing open account transactions.
• The role of factoring companies.
• Invoice discounting versus full service factoring.

Short Term Credit Insurance
• Assessing the extent of cover.
• Risk appreciation.
• Financing with credit insurance support.

Day 4

Commodity Finance Overview
• Assessing the value of collateral and receivables.
• Looking beyond the balance sheet.
• Available documentation - taking and retaining title.

Pre-export Finance
• Risks relating to grower / producer finance.
• Assessing the country risk.
• Understanding the trade flows.

Case study: Evaluation of a pre-export finance proposition.

• The use of red and green clause credits.

Guest Speaker Presentation

Practical Measures for Identifying and Avoiding Risk for Trade Finance Bankers and Traders – an Analysis Based Upon Cases Handled by the IMB
• Exploring how bankers and traders can identify the risks in trade finance.
• Analysing recent case studies of buyers, sellers and banks at risk.
• Meaningful investigations into the recovery of losses.
• Practical precautions for banks and traders.
Michael Howlett, Divisional Director, ICC International Maritime Bureau, ICC Commercial Crime Services.

Financing the Commodity Trader
• Appreciating supply and delivery routes.
• Assessing the quality of the trade.
• Control in a warehousing environment.
• Tolling transactions.
• Letters of indemnity.

Case study: Interactive assessment of a commodity trader’s financing needs.

Financing the End User
• Source and reliability of supplies.
• Understanding the manufacturing process.

Day 5

Commodity Futures
• Understanding hedging techniques.
• The role and value of the exchanges.

Countertrade Techniques
• Understanding structural differences.
• The effective use of escrow accounts.
• The potential role for the banker.
• Assessing the viability of a transaction.

Case study: Structuring a counterpurchase deal.

Fraud in Trade and Commodity Finance
• Common problem areas.
• Sources of assistance.
• High profile examples and lessons to be learnt.

Case study: Syndicate based assessment of a fraudulent transaction.

An Overview of Export Credit Agencies
• Medium / long term finance.
• Risk coverage and basic mechanisms.
• Covering the residual risks.
• Subsidised financing.

Case study: Meeting the customer’s needs – finding a trade finance solution.

Course review and conclusion.

 

• Graham Bull

  Graham Bull has over 25 years experience in the banking industry, 19 of which were devoted to the international trade finance and correspondent banking sectors.
  
  The bulk of Graham's banking career was spent with Bankers Trust Co, as a Vice President in the trade banking division, where he conducted business throughout Europe, Africa and the Middle East. He specialised in practical problem solving for major corporates and commodity traders, and carries those skills into his present day training and consultancy work.
  
  For over 12 years Graham has worked as a consultant responsible for international trade courses. In all, Graham has provided training courses in over 30 countries.

• Irving Henry

  Director, Prudential Capital and Risk
  British Bankers' Association (BBA)

  Irving is policy director for prudential capital and risk at the British Bankers’ Association.

  He left Brunel University in 1995, having read law and then completed a Masters in European Studies.

  His career began in compliance at Equitable Life (1995–7), and progressed in compliance at National Westminster Bank (1998–9) and HSBC (1999–2003).

  He left compliance in late 2003, becoming a transaction manager at HSBC’s investment banking arm, and specialising in debt capital for emerging markets and Islamic finance (murabaha and sukuk). Irving returned to compliance in late 2006, joining The Bank of New York Mellon, specialising in issuer services and treasury.

  He joined the BBA in late May 2008. In addition to prudential soundness, Irving assists with capital markets policy, and sits on various BBA and European Banking Federation panels, for example compliance, private banking, Islamic and trade finance, and banking supervision.

  Irving is a member of the Securities and Investment Institute and holds the diploma in investment compliance.

• Shane Gleghorn

  Partner, Financial Disputes
  Taylor Wessing

  Shane heads the Financial Disputes group of Taylor Wessing and specialises in dispute resolution and investigations in the banking and finance sector. Shane has wide-ranging experience in acting for financial institutions and companies in complex litigation and regulatory disputes.

  He acts for banks and other financial institutions in all areas of contentious business, risk management and reputational risk, including contentious regulatory matters. Shane is recognised in the area of banking litigation by Chambers and Legal 500. Chambers notes that he is “charming yet relentless” and impresses sources for being able to “get to the objective of a case very quickly”.

  Shane has a Masters of Law in Banking and Finance from the University of London (King’s College).

• Michael Howlett

  Divisional Director, ICC International Maritime Bureau
  ICC Commercial Crime Services

  Michael began his career working in a bank in the City of London. After just over a year, he escaped into academia where he subsequently completed a degree in Politics and Economics. After his graduation and a well-deserved rest, Michael enjoyed a brief flirtation with the Civil Service before joining the ICC-International Maritime Bureau (IMB) in May 1994.

  Michael is the Divisional Director of the IMB and a Director of ICC Commercial Crime Services. He has been instrumental in identifying systematic international fraudsters, invited to provide evidence and appear as a witness in trade related criminal cases and assisted in the investigation of the largest fraud in trade finance history.

  Michael oversees the daily operations of the Bureau’s London activities. In addition to advising member banks with suspect or irregular presentations, Michael closely co-ordinates with the IMB’s trading, shipping and insurance company members with regards to loss prevention and advice and works closely with the Piracy Reporting Centre in Kuala Lumpur.

  He has travelled on investigations to a number of countries, spoken at numerous conferences and seminars worldwide and written papers on areas connected with the subject of fraud and malpractice in international trade.

London School of Trade Finance

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

London School of Bank Risk Management

21-25 May 2012 (London, UK)
12-16 Nov 2012 (London, UK)

An intensive 5-day training course providing you with an overview of modern risk management.

London School of Corporate Finance

1-5 Oct 2012 (London, UK)

A 5 day practical "how to" financial training course taught by an internationally renowned corporate finance expert. The course takes you through all the forms of Corporate Finance from M&A to IPO's to LBO's. Strategy, structuring and valuation are key themes throughout, and upon return to your organisation you will be fully prepared to put your learning into practice.

Structured Trade & Commodity Finance

11-14 Sep 2012 (London, UK)

A 4-day comprehensive training course looking at risk management, financing of commodities and trade finance

School of Bonds & Fixed Income Products

10-15 Sep 2012 (South of England, United Kingdom)

Expand your knowledge on structures and applications of bonds and fixed income products.

London School of Management & Leadership

25-29 Jun 2012 (London, UK)
10-14 Dec 2012 (London, UK)

Euromoney Training's new five day financial training course, 'Management and Leadership for Bankers and Financial Managers' will offer unparalleled insight into the nuances of the financial sector and the unique way it operates. Crucially, it will also give you the tools you need to transform the way you and your staff work and enable you to succeed in an increasingly competitive marketplace.

London School of Private Banking

10-14 Dec 2012 (London, UK)

A tailor-made financial training course developed specifically for Private Bankers by internationally renowned experts with unparalleled knowledge of the market, the industry and the players. The topics covered on the course include asset allocation, estate planning, investment products and business development

London School of Investment Management

3-13 Jul 2012 (London, UK)
3-13 Dec 2012 (London, UK)

A 9-day intermediate financial training course exploring the asset classes, innovative portfolio strategies and asset allocation

London School of Treasury Management

25 Jun 2012 - 6 Jul 2012 (London, UK)
3-14 Dec 2012 (London, UK)

Join us here in London for this specialised course assessing treasury risk management instruments and their applications.

London School of Retail Banking

10-14 Sep 2012 (London, UK)

This 5-day course gives delegates an overview of the current trends and opportunities in the global retail banking space and discusses how to design successful marketing and distribution strategies.

London School of Derivatives

2-6 Jul 2012 (London, UK)

This five-day derivatives training programme has been designed to provide delegates with a thorough understanding of the pricing, trading and risk management of derivatives.

London School of Credit Analysis

9-13 Jul 2012 (London, UK)

During the 5 days, two of the top credit specialists will take you through the regulations, rating agencies, cashflow, debt issues, corporate loan workouts and financial restructuring.

Ship Finance

18-20 Jun 2012 (London, UK)

Recovery strategies for the shipping Industry

Trade & Supply Chain Finance

26-28 Nov 2012 (London, UK)

London School of Corporate Banking

18-22 Jun 2012 (London, UK)

Reviewing the main challenges of corporate banking in the post 2008 and 2011 banking crisis environment

 

Comments