*SMU Executive Certificate in Structured Trade & Commodity Finance

Recent high profile fraud cases involving commodity financing highlights the challenges faced by financial institutions 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.

Facilitated by industry veterans, the SMU Executive Certificate in Structured Trade & Commodity Finance course adopts a case-study learning approach to share practical insights on market nuances, pitfalls, risk mitigation and controls.

 

Coverage includes the financing of oil, metal and agricultural products using structures such as shipment sales, pre-payment, pre-export, receivables, warehouse receipts and tolling. Participants will learn to identify and assess potential risks, formulate mitigation and be cognizant of the legal environment and documentary requirements.

 

Programme CodeSMU Executive Certificate in Structured Trade & Commodity Finance: P151026NSM

Programme Objectives

  • Understand the nuances and challenges of financing commodities

  • Differentiate between traditional and structured trade financing technique (Shipment sales, prepayment, pre-export, warehouse receipt, tolling)

  • Learn about commodity repo, credit trade insurance & securitization

  • Gain insights from industry veterans on useful tips and painful pitfalls

  • Internalize learning through hands-on case assignment

  • Know the core financing techniques

Who Should Attend

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

  • Relationship managers and bankers who advise trading and commodity companies

  • Trade finance specialist, account/marketing managers engaged in structuring trade financing deals

  • 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

Module 1.1: Building Blocks of Structured Trade & Commodity Finance

  • Overview of structured trade & commodity financing

  • Risk assessment & management

  • Credit assessment & enhancements

  • Legal documents, opinion & security interest

  • Standard term sheet

 

Module 1.2: Prepayment Financing

  • Structure & characteristics of prepayment financing structures

  • Transaction flow – goods, documents & parties involved

  • Transaction economics & repayment mechanism

  • Commercial contracts, security & other documentation

  • Case studies 

 

Module 2: Transactional Financing of Bulk Commodities

  • Overview of commodities market

  • Trade documentation related carriages of bulk commodities by sea

  • Transaction financing of dry bulk commodities

  • Transaction financing of crude oil & petroleum products

  • Case studies

 

Module 3: Borrowing Based & Export Receivable Financing

  • Structure & characteristics of borrowing based facilities

  • Key credit considerations – collaterals & insurance

  • Forms of borrowing base certificates

  • Advance ratios & mark-to-market techniques

  • Case studies

 

Module 4: Reserve Based Lending & Tolling Finance

  • Structural elements of reserve base lending

  • Key considerations for reserve base facilities

  • Tolling framework & arrangements

  • Trader vs. refinery economics

  • Case studies

 

Module 5: Commodity Repo & Warehouse Receipt Financing

  • Structure of repo arrangement

  • Benefit of commodity ownership

  • Warehouse receipt financing structure

  • Key consideration & documentation

  • Case studies

 

Module 6: Trade Credit Insurance

  • Trade credit insurance (TCI) – products, risks & usage

  • Insurance Act 2015 & implications for TCI contract

  • Salient features of TCI policies

  • Market for single risk business

  • Case studies

Assessment & Certification

Upon successful completion of the assessment, candidates will be awarded the SMU Executive Certificate in Structured Trade & Commodity Finance.

Type of Course

Classroom

Category

Finance and Risk Management

Fees & Funding

S$6,800 (excl. GST)

 

FTS Funding
This programme is pending funding approval from The Institute of Banking and Finance (IBF). Programmes recognised under the Financial Training Scheme (FTS) is eligible for FTS claims subject to all eligibility criteria being met. The FTS provides 50% funding for direct training costs subject to a cap of S$2,000 per participant per programme. For Singapore Citizens aged 40 years and above, FTS provides 90% funding, subject to existing grant caps. For more information, refer to https://www.ibf.org.sg/programmes/Pages/IBF-FTS.aspx.

 

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.


Union Training Assistance Program (UTAP)
NTUC members are eligible for UTAP funding at 50% of the unfunded course fee capped at $250 every year. For application, terms and conditions, please click here.

Prerequisites

Basic degree with relevant experience in trade financing

Course Dates

Apr 2018

Contact Us

For enquiries, please contact Chiew Yee at 6828 0971, Jaclyn at 6828 0254 or email fti@smu.edu.sg

Programme Policies

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

Trainer's Biography

Angela Wei has over 18 years experience in banks and commodity trading companies. She held senior management roles with Commerzbank and ANZ Bank before moving to Cargill Singapore as the Director of Asia Structuring for its Trade and Structured Finance business. She recently joined Bank of China as Head of the Commodity Business Unit. Angela has an MBA from Imperial College and a degree in Economics & Law.

 

Bernadette Cenzon was involved in structuring and financing of commodity trade transactions since 1987. In a banking career that spanned over 20 years, she held various senior management and advisory positions for European banks such as Natixis Banque, Rabobank, Fortis and Credit Agricole Indosuez. She has extensive experience in setting up structured trade desks in Singapore and Hong Kong, as well as structuring cross border and syndicated deals in Asia.

Ms Cenzon currently runs her own trade finance consultancy firm, providing advisory services on structured trade finance. She has been engaged in professional training since 2003, conducting workshops and in house training in Jakarta, Singapore, Malaysia, Bangkok, Mumbai, Shanghai and Hong Kong.

 

Mihir Taparia is a senior executive with 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. He also advised on the listing of an Indonesian coal mine on SGX Catalist in 2014 and was Independent Director of the listed entity, Resources Prima Group Limited, for fifteen months before establishing his corporate finance firm in Singapore for advising companies on their corporate development initiatives including corporate restructuring, fundraising and M&A activities.

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

 

Poon Churn-Yuen is a senior risk and trade finance professional, specializing in commodities. He has over 18 years of experience in credit, structured trade finance and risk management. He started his career in the banking industry, before moving to the corporate sector in late 1999, where he held various management positions in BHP Billiton, Titan Petrochemicals and Chevron Texaco. In 2011, he established his own consultancy firm that focus on advisory services on commodity finance for Asia-based clients in metals, energy and petroleum products.

Since 2000, Mr Poon has been facilitating training for in-house training and public seminars.

 

Yong Meng was a veteran banker with a distinguished career spanning over 30 years. He started his career in commercial banking with UOB, before moving on to head up trade and commodity finance desks for European banks such as AMRO Bank, Rabobank and Fortis. He rejoined UOB in 2002, and was instrumental in building up the bank’s lead among the local banks in structured trade and commodity finance business. He retired from banking in 2008, but remains actively engaged in providing consultancy services to banks and trading houses.

Mr Yong has been an adjunct lecturer at the Singapore Management University since 2008. Besides sharing his wealth of knowledge with the undergraduates, he is actively engaged in facilitating professional training on structured trade and commodity finance for banking and finance professionals.