Euromoney Audit Training

• Letters of Credit & UCP600
• Back-to-back, Red Clause, Green Clause and other special purpose letters of credit
• Standby LCs and Bank Guarantees
• Factoring & Forfaiting
• Cargo Insurance and Logistical Aspects of International Trade
• The structured approach to Trade Finance
• Commodity Trade Finance structures - Pre-Finance, Asset-backed and Receivable-backed structures
• Performance Risk-based lending
• Political and Credit risk insurances used in Trade Finance

Training Course Background

This course covers banking practices from both a product perspective and a lending perspective, particularly as Structured Trade & Commodity Finance. Therefore, this programme is suitable for bankers, lawyers, risk managers, international traders and finance professionals.

The course will offer participants an opportunity to acquire a concrete understanding of the use of Trade Finance products, the rationale behind related banking practices and applicable rules. It will also provide insights about Commodity Trading and financing considerations;

• what happens behind-the-scenes
• interface with the bank;
• identifying sources of risk;
• risk transfer
• control measures

Who Should Attend

• All commercial/investment bankers interested in Commodity Trade Finance & Capital Goods financing who wish to be informed about innovative solutions for emerging market business
• Account/Marketing/Operations Managers in Structured Trade Finance
• Country Managers/General Managers/Regional Managers of commercial/corporate/investment banks interested in seeking international perspectives on financing trade flows
• Credit Managers wishing to update themselves on risk aspects of Trade Finance
• Managers from trading businesses and any business enterprise engaged in import of Raw Materials and/or export of finished goods
• Financial Controllers, Treasurers, Commercial Lawyers, Bank regulators, Logistics and Insurance sector professionals

• Practical illustrations
• Case Study
• Real-life documentation
• Group Discussion and Analysis
• Sharing experiences and problem-solving
• Power Point presentation supported with brief lectures
• Supplementary reading material

Classroom setting will be highly interactive.

Day 1

Documentary Collections, letters of credit components

• The ‘Hong Kong’ Clause
• Rights, Responsibilities of Remitting Bank and Collecting Bank
• Avalization/Co-acceptance
• Implications of select URC522 provisions

• Payment/Acceptance/Deferred
• Payment /Negotiation
• Contractual Relationships in L/C transaction
• Issue of credits by non-bank institutions

• Clinker clauses (a.k.a. lobster-trap clauses)
• Non-operative credits
• Treatment of Force Majeure

• Irrevocable Reimbursement Undertaking
• L/C refinancing
• Critical articles in URR525

Day 2

• Bank and Country risks in Letter of credit transactions
• Documentary risk

• Mishaps in Letter of Credit transactions
• Managing risks in letter of credit transactions
• Constructing effective Letters of Credit
• Important Articles in UCP600
• Critical differences between UCP500 and UCP600

• Revolving Letters of Credit
• Red Clause and Green Clause letters of Credit
• Transferable Letters of Credit

• Support LC transactions
• Crude Oil Letters of Credit
• Other special-purpose Letters of Credit
• Export Negotiation/Purchase/Discount

Day 3

Performance risk products & accounts receivable financing

Standby Letters of Credit and Guarantees

• Differentiating between standby L/C and bank guarantee
• Bid bonds, Performance bonds, Advance
• Payment guarantees
• Critical aspects of ISP98 and URDG458

• Contractual arrangements and cash flows in a factoring arrangement
• Forfaiting - without recourse financing
• Costs and Yield calculations

• Bills of lading, mate's receipt, seaway bill, airway bill, truck receipt, rail receipt, warehouse documents
• Lien, pledge and trust receipt
• Shipping guarantees
• Incoterms 2000
• “Received for shipment” and “on board” bills of lading
• CY, CQD, FIOS and LT terms

• Logistics and the value chain
• Contracts of affreightment
• Voyage, time and Trip charters
• Chartering contract format

• 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

Day 4

Lending propositions in international trade

Commodities as a Global Business

• Determinants of price in commodity business
• Incentive to contract
• Players, their roles and the competitive advantage they are attempting to extract

• Components of Commodity Contracts
• Risk analyses of commodity flows
• Control documents in a commodity flow
• ‘Structured’ approach to trade financing

• Pre-finance
• Red Clause and Green Clause letters of Credit

Day 5

• Risk mitigation in commodity trade
• Exchange-traded commodities
• Links between cash and futures markets
• Delivery to and from terminal markets

• Impact on overall risk profile of transactions
• Insurance for Contract default, Contract frustration

Review of issues raised during programme

Q & A

Conclusion

• Srinath Keshavan

  Srinath Keshavan is a Trade Finance practitioner with 30 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.

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.

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