SMU Executive Certificate in Structured Trade & Commodity Finance

Overview

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. 

The certification course consists of 6 modules. Classes are delivered using a combination of lectures and case discussions to drive home key learning points. Participants will need to complete a take-home case assignment at the end of the course. Candidates who have successfully passed all assessments will be awarded the SMU Executive Certificate in Structured Trade & Commodity Finance.

Next Course Starts On26 Jul 2018 (Thu) See Full Schedule
Fee SGD7276.00* (as low as SGD1582.00* after maximum funding) Learn more
Duration

6 days 

Level
Advanced
Venue

Singapore Management University

Learning Objectives
  • Understand the nuances and challenges of financing commodities
  • Differentiate between traditional and structured trade financing techniques
  • Know the core financing techniques (Shipment sales, prepayment, pre-export, warehouse receipt, tolling)
  • Learn about commodity repo, trade credit insurance & securitization
  • Gain insights from industry veterans on useful tips and painful pitfalls
  • Internalize learning through hands-on case assignment

Topics/Structure

Module 1

Building Blocks of Structured Trade & Commodity Finance

Next course starts on: 15 Feb 2019 (Fri) (See complete schedule)

Overview

Recent high profile fraud cases highlight 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 Building Blocks of Structured Trade & Commodity Finance workshop aims to provide the foundational knowledge for professionals looking to deepen their expertise in financing commodity trades. 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.

 

Topics/Structure

Building Blocks of STCF

  • Understanding international trade

  • Carriage of goods by sea

  • Fundamentals of risk insurance

  • Lending to commodity trading companies

Prepayment Financing

  • Structure and characteristics

  • Transaction flow

  • Transaction economics & repayment mechanism

  • Commercial contracts, security & other documents

  • Case discussion

An Overview of Structured Trade & Commodity Financing (STCF)

  • Traditional versus structured trade financing

  • Core financing structures

  • Risk identification

  • Credit enhancements

  • Legal documents

  • Security, Collaterals & Covenants

  • Standard term sheet

You can choose to take this module only. Learn more
Module 2

Borrowing Base Lending

Next course starts on: 29 Mar 2019 (Fri) (See complete schedule)

Overview

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 Borrowing Base Financing workshop examines the key considerations in structuring borrowing base facilities, with special focus on Export Receivable 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.

Topics/Structure

Overview of Soft Commodities

  • Grains

  • Oilseed products

  • Beverages

Structuring Borrowing Base Facilities

  • Structure and characteristics

  • Key considerations

  • Form of borrowing base certificates

  • Collateral control & monitoring

  • Physical supply chain

  • Case discussion

Export Receivable Financing

  • Types of export receivable financing

  • Legal, documentary & operational requirements

  • Use of trade credit insurance

  • Credit protection & liquidity

  • Current market trends

  • Case studies

You can choose to take this module only. Learn more
Module 3

Transactional Financing of Bulk Commodities

Next course starts on: 09 Mar 2019 (Sat) (See complete schedule)

Overview

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 Transactional Financing of Bulk Commodities workshop focuses on the commonly used transaction financing structures involving shipment sales of bulk commodities such as oil, metal and agricultural products. 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.

 

Topics/Structure

Overview of Commodities Market

  • Types & characteristics of bulk commodities

  • Bulk carriers & seaborne trade

  • Commodity value chain

Secured Shipment Sales Financing of Dry Bulk

  • Overview of metal & mining

  • Structure & characteristics

  • Key considerations

  • Case discussion

Secured Financing of Oil & Petroleum Products

  • Overview of crude & petroleum products

  • Salient features of oil financing

  • Sales & purchase agreement for oil

  • Key terms in sales & purchase agreement

  • Financing the purchase & sale of oil

  • Case discussion

You can choose to take this module only. Learn more
Module 4

Commodity Repo and Warehouse Receipt Financing

Next course starts on: 30 Mar 2019 (Sat) (See complete schedule)

Overview

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 Commodity Repo & Warehouse Receipt Financing workshop examines the key considerations in warehouse receipt financing and commodity repo arrangement. 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.

 

Topics/Structure

Warehouse Receipt Financing

  • Structure & characteristics

  • Salient issues

  • Risk considerations

  • Case discussion

Repo Arrangement

  • Structure & characteristics

  • Benefits of commodity ownership in Repo

  • Salient issues

  • Documents and key clauses

  • Case discussion

You can choose to take this module only. Learn more
Module 5

Trade Credit Insurance

Next course starts on: 27 Apr 2019 (Sat) (See complete schedule)

Overview

Commodities have had a rough ride in the last few years. This coupled with the need to improve returns on risk-weighted assets and capital deployed for banks, have resulted in some banks reducing their exposures to this sector, and concentrating only on the top end of the risk pyramid. Traders have stepped in to fill this financing gap in the market by venturing into various emerging markets. To improve their competitiveness, banks are actively exploring the use of risk mitigation tools to improve their capital efficiency for structured commodity trade financing. This has led to an increase in the use of trade credit insurance.

This Trade Credit Insurance workshop examines the use of credit insurance as an enabler of structured trade and commodity finance. Facilitated by industry veterans, this workshop adopts a case-study learning approach to share practical insights on how to put in place effective credit insurance solutions.

 

Topics/Structure

Trade credit insurance (TCI)

  • What is it?

  • Why is it relevant to banks, traders?

  • Nuances of the Insurance Act 2015 & implications for TCI contract

  • Salient features of TCI policies

  • Market for single risk business

  • Case discussion

You can choose to take this module only. Learn more
Module 6

Reserve Base Lending

Next course starts on: 20 Sep 2018 (Thu) (See complete schedule)

Overview

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. 

 

Topics/Structure

Reserve Base Lending

  • Overview of production sharing contracts

  • Structure & characteristics

  • Salient issues

  • Risk considerations

  • 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

You can choose to take this module only. Learn more

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 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

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.

Assessment

Upon successful completion of all 6 modules in the programme and the written case assessment, candidates will be awarded the SMU Executive Certificate in Structured Trade & Commodity Finance.

Fees and Funding

 International ParticipantsSingapore Citizens1Singapore PRsEnhanced Training Support for SMEs4
21 to 39 years old40 years or older2Eligible for WTS3≥21 years old
Fees For Full CertificationS$6800S$6800S$6800S$6800S$6800S$6800
Less: SSG Grant Amount-(S$4200)(S$4200)(S$4200)(S$4200)(S$4200)
Nett Programme FeeS$6800S$2600S$2600S$2600S$2600S$2600
7% GST on Nett Programme FeeS$476 S$182 S$182 S$182 S$182 S$182
Total Nett Programme Fee Payable, Including GSTS$7276S$2782S$2782S$2782S$2782S$2782
Less Additional Funding if Eligible Under Various Schemes--(S$1200)(S$1500)-(S$1200)
Total Nett Programme Fee Payable, Including GST, after additional funding from the various funding schemesS$7276S$2782S$1582S$1282S$1582S$1582

1 All self-sponsored Singaporeans aged 25 and above can use their $500 SkillsFuture Credit to pay for the programme. Visit the SkillsFuture Credit website (www.skillsfuture.sg/credit) to select the programme.

2 Mid-Career Enhanced Subsidy - Singaporeans aged 40 and above may enjoy subsidies up to 90% of the programme fee

3 Workfare Training Support (WTS) - Singaporeans aged 35 and above (13 years and above for persons With disabilities) and earn not more than S$2,000 per month, may enjoy subsidies up to 95% of the programme fee.

4 Enhanced Training Support for SMEs (ETSS) - SME-sponsored employees (Singaporean Citizens and PRs) may enjoy subsidies up to 90% of the programme fee. For more information, visit www.ssg.gov.sg/programmes-and-initiatives/training/enhanced-training-support-for-smes.html.

5 Eligible organisations (excluding government entities) may apply for the absentee payroll funding via SkillsConnect at www.skillsconnect.gov.sg for Singaporean/permanent resident participants attending the programme during working hours. The absentee payroll funding is computed at 80% of hourly basic salary capped at $4.50 per hour or $7.50 per hour for SME or 95% of hourly basic salary for WTS. For more information, visit https://www.skillsconnect.gov.sg/sop/portal/e-Services/For%20Employers/AbsenteePayroll.jsp

Schedule

Start Date(s)
Intake Information

M1: 26 Jul 2018, Thu
M2: 17 Aug 2018, Fri
M3: 25 Aug 2018, Sat
M4: 1 Sep 2018, Sat
M5: 7 Sep 2018, Fri
M6: 20 Sep 2018, Thu

Assessment: TBA

Lessons are held from 9am -5pm.

 

Speaker/Trainer Bio

Our panel of trainers has an average of 25 years of experience in commodity financing, trading with banks or trading companies and insurance. These industry veterans held senior positions in banks such as AMRO bank, Rabobank, Fortis, Credit Agricole, Bank of China and United Overseas Bank, trading companies such as BHP Billiton, Titan Petrochemical, Chevron Texaco and Cargill, oil companies such as PT Trans-Pacific Petrochemical Indotama and Gulf Canada, and insurance companies such as Marsh, Atradius, Willis and Market International. Trainers have extensive experience structuring cross-border and syndicated deals in Asia, across diverse commodity segments in agricultural, metal and oil commodities.

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