Professionals involved in the commodity trading and financing value chain need to possess specialised knowledge to manage their risk exposures and avoid huge losses.

Recent high profile fraud cases highlights the challenges faced by financial institutions and trading houses in financing commodity trades. Given the diversity, complexity and substantial size of commodity trades, professionals involved in the commodity trading and financing value chain need to possess specialised knowledge to manage their risk exposures and avoid huge losses.

 

The Reserve Base Lending workshop examines the characteristics of a reserve base financing structure and tolling financing. Facilitated by industry veterans, this workshop adopts a case-study learning approach to share practical insights on market nuances, financing structures, pitfalls, risk mitigation and controls. 

 

This is the Fourth of six modules leading to the SMU Executive Certificate in Structured Trade & Commodity Finance.

 

Programme Code

to be advised

Programme Objectives

  • Understand the economics of production sharing contracts

  • Learn the structural elements of reserve base lending

  • Apply tolling structure to finance petrochemicals

  • Know how hybrid tolling works

  • Gain insights from case discussion

Who should attend

  • Senior management in corporate lending looking into structured trade finance business

  • Relationship managers and bankers who advise trading and commodity companies

  • Trade finance specialist, account/marketing managers 

  • Commodity traders who are keen to learn the financing aspects of commodity trades

  • Corporate treasurers, finance directors in trading and commodity companies

  • Professionals in middle office functions such as credit, risk, audit and operations, responsible for ensuring proper execution, management and financing of commodity trades

Topics

Reserve Base Lending

  • Overview of production sharing contracts

  • Structure & characteristics

  • Salient issues

    • Legal rights over goods

    • Control over physical goods

    • Collateral management

    • Warehouse & storage

  • Risk considerations

    • Legal

  • Case discussion

 

Tolling Framework & Agreement

  • Overview of petrochemical refinery

  • Structures & characteristics

  • Short versus long term tolling arrangements

  • Trader versus refinery economics

  • Risk management

  • Documentations & key clauses

  • Case discussion

Level of Proficiency

Intermediate

Assessment

An written assessment will be conducted at the end of the course.

Certification

Upon meeting the minimum attendance requirement and passing the assessment, participants will receive a Certificate of Completion.

Type of Course

Classroom

Category

Finance

Fees

Full Fee: S$1,070 per pax (incl. GST)

 

SkillsFuture Singapore (SSG) Funding for Individuals:

  • S$321 (incl. GST) for Singapore Citizens and Singapore Permanent Residents
  • S$121 (incl. GST) for Singapore Citizens aged 40 years and above

Funding

SkillsFuture Series
Course fee grant at 70% of course fees (excl. GST) for participants who are successfully enrolled by SMU into approved courses under the Programme. Participants must be Singapore Citizens or Singapore Permanent Residents.


SkillsFuture Mid-Career Enhanced Subsidy ("MCES")
Up to 90% of course fees for Singapore Citizens aged 40 years and above


Enhanced Training Support for SMEs ("ETSS")
Up to 90% of course fees; and 80% of basic hourly salary capped at $7.50/hr for local employees of SMEs


SkillsFuture Credit
Singapore Citizens aged 25 and above, and self-funding may use their SkillsFuture Credit (up to S$500) to defray part of the course fee. Please click User Guide on how to submit your claim. SkillsFuture Credit claims may be submitted by logging in via MySkillsFuture.sg.

Prerequisites

This is an advanced level course. Participants are required to have a good working knowledge of traditional trade financing such as Incoterms, trade documentations, documentary collection/credit and trade financing instruments such as bills of exchange, letters of credit, demand guarantees etc. Admission to the programme is subject to approval.  

Course dates

18 May 2018
Weekday 09:00 - 17:00

Contact Us

For enquiries, please contact Jaclyn Mah at 6828 0254 or email fti@smu.edu.sg

Programme Policies

Please click here for the programme policies, terms and conditions. 

Trainer's Biography

Mihir Taparia

Mihir has over 35 years’ of financial, commercial and corporate development experience. The last 25 years was spent in South East Asia with PT Trans-Pacific Petrochemical Indotama and Gulf Canada, where he was involved in the development, financing and structuring of mega greenfield projects in Indonesia in the energy space. Mihir established his own corporate finance advisory firm in 2016.

Mihir is a UK qualified Chartered Accountant and is an Associate member of the Institute of Chartered Accountants in Alberta, Canada.