Euromoney Audit Training

Course overview

Global trade has become more complex and the economic environment more uncertain. Corporates' earnings are volatile and trade financiers are required to cope with unfamiliar risks. It is extremely important for trade
finance practitioners to have a complete understanding of the current scenario, the proper use of products and the risk attributable to different business situations. Risk avoidance and management underlines all  trade finance activities.

'Trade Finance Products and Mechanisms' enables you to mitigate, change and stylise your trade finance strategies.

Summary of course content

• Contractual and documentary credit structures
• Third party documents
• Title documents, negotiability and endorsements
• Instalment credits
• Various types of letters of credit and guarantees
• Mechanism of documentation collections
• Accounts receivable financing
• Trade credit insurance
• Forfaiting

Methodology

The course will be taught at an intermediate level. It should appeal to experienced trade finance professionals and users.

It is assumed delegates will have knowledge of trade finance principles, tools and mechanisms. While treatment of every topic will commence at a basic level, the discussion will progress swiftly to the more evolved aspects. This is a highly interactive course.

Many concepts will be introduced and illustrated through group discussions and the carefully designed case studies related to Asia and the emerging markets.

Who should attend?

• Trade finance bankers
• Forfaiters
• Credit analysts from banks/export credit agencies
• Export managers in multi-national corporations
• Lawyers involved in trade finance
• Structured corporate bankers
• Emerging market bankers
• Risk managers
• Audit and compliance managers
• Monetary authorities and regulators

Commodity Trade Finance - 16-17 June 2011, Bangkok

Supporting publications

 

 

 

   

DAY ONE

Documentary credit structures

• Role of advising bank
• Payment
• Acceptance
• Deferred payment
• Negotiation
• Recourse and without recourse
• Contractual relationships in Letters of Credit (L/C's) transaction

Issue of credit by non-bank institutions

• Changes introduced through UCP600 and critical articles

Bank-to-Bank reimbursement structures

• Correspondent banking arrangements for reimbursements
• L/C's refinancing - by commercial banks/by government financial intermediaries
• Critical articles in URR725

Third party documents

• Clinker clauses
• Non-operative credits
• Critical articles in ICC645 (ISBP)

DAY TWO

Export negotiation, purchase, discount

• Presentation period and "out-ofdate" documents
• Confirmation - open and silent
• Bank and country risks in letter of credit transactions
• Documentary risk

Title documents, negotiability, endorsements

• Types of transport documents
• Bills of lading
• Mate’s receipt
• Seaway bill
• Airway bill
• Truck receipt
• Rail receipt
• Warehouse documents
• Lien, pledge and trust receipt
• Shipping guarantees
• Incoterms 2010
• "Received for shipment" and "on board" bills of lading

Instalment credits

• Revolving L/C's
• Red clause and Green clause L/C's
• Transferable L/C's
• Latest ICC decisions on transfer of credits

Back-to-back Letters of Credit

• Support L/C's transactions
• Crude oil L/C's
• Other special-purpose L/C's

DAY THREE

Standby Letters of Credit and guarantees

• Differentiating between standby L/C's and bank guarantees
• Bid bonds, performance bonds, advanced payment guarantees
• Contract guarantees
• Usage of standby L/C's in trade transactions
• Critical aspects of ISP98 and URDG758

Mechanism of documentary collections

• The "Hong Kong" clause
• Rights, responsibilities of remitting bank and collecting bank
• Avalisation/co-acceptance
• Financing collections
• Critical articles of URC722

Account receivable financing

• Factoring - an invoice discounting mechanism
• Contractual arrangements and cash flows in a factoring arrangement
• Forfaiting - without recourse financing
• Costs and yield calculations

Insurable risk, insurable interest, utmost good faith and subrogation of rights cover notes, insurance policies/certificates

• ICC (A), (B) and (C) covers
• Assignment of covers and first loss payee

Course conclusion and summary

• Srinath Keshavan

  Srinath Keshavan is a Trade Finance practitioner with 29 years experience in the Asia-Pacific region. His experience encompasses both commercial and financial aspects of International Trade. He worked for many years in Bills, Banking Operations and Credit & Marketing Departments of an international bank in Hong Kong. Since 1991, Mr. Keshavan has been associated with commodity-trading firms in Singapore as Head of Trade Finance and Risk Management. His expertise relates to structuring financial arrangements for international trade transactions, raising credit lines and managing banking relationships. Mr. Keshavan heads a trade finance consultancy in Singapore. His seminars provide clarity over technical concepts and offer participants the opportunity to reinforce their own understanding of the subject through practical illustrations.

  Courses run by this instructor

  • Commodity Trade Finance
  • Structured Trade and Commodity 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.

Commodity Trade Finance

28-29 Jun 2012 (Singapore, Singapore)
22-23 Nov 2012 (Hong Kong, Hong Kong)

As a commodity banker, trader or even a producer, a flexible and creative approach to new services and products is extremely important in ensuring the best position in the market. Also see Trade Finance Products and Mechanisms. Attend both courses and receive a discounted fee of US$7,200.

Structured Trade and Commodity Finance

24-27 Sep 2012 (Singapore, Singapore)

Structured Trade and Commodity Finance is designed to appeal to professionals interested in risk management and financing of physical flows of commodities.