Structured commodity finance
The fundamentals of structured commodity finance
A practical guide to the evaluation of risk and forms of commodity finance.
The workshop will provide attendees with an introductory understanding of what structured commodity finance is, the key risks, nature of commodities, forms of countertrade and the various structured commodity finance techniques.
An appreciation of trade instruments such as letters of credit and bonds and guarantees will be required prior to course attendance. Please refer to our courses "A practitioner's guide to trade finance" and "Bonds, guarantees and standby LCs". Elements of these courses can be added to this course, where required, to make a 2 day entry course.
The intermediate course also provides the opportunity for delegates to test their knowledge using a number of case studies and participating in several role plays.
Entry level 1 day, intermediate level 2 days.
Who Should Attend?
Companies, bankers, lawyers, and accountants.
The course is suitable for everyone involved in international trade – to include sales, finance, operations, logistics, administration, credit risk and compliance.
- What structured commodity finance is and when it should be used
- Typical commodities
- Looking beyond the balance sheet
- Identification and evaluation of risk
- Understanding trade flows
- Taking and retaining title of goods and receivables
- Use of escrow accounts
- Pre-export financing:
- Inventory/warehouse financing
- The use of red and green clause letters of credit
- Receivable financing
- Commodity price risk hedging
- 3rd party credit enhancement techniques
- Overview of the various forms of countertrade
- Practical case studies and role play*
Intermediate course only*