STRUCTURED TRADE & COMMODITY FINANCE (BF/2024/BOAZ /05)

Structured Trade and Commodity Finance revolve around identifying and managing the risks associated with International Trade and Commodity Finance.  Prior to the Latin American financial crisis in the 1980s, Banks involved in international commodity finance relied on financial analysis and Government guarantees for ascertaining the credit worthiness of the borrowers.  The assessments were enhanced by tangible assets as collateral.  These traditional tools were later found to be inadequate to deal with increasing economic and political risks in transitional markets.  These inadequacies resulted in a range of innovative and structured commodity financing techniques to mitigate the risks of losses and evaluate the potential losses associated with financing off-shore trading transactions.

It has long been recognized that expertise in one component of a trade finance deal is not enough for financiers.  A detailed understanding of all components is essential to protect the financiers and their clients’ interests.  It is against this backdrop that this 5 – day interactive and practical course was designed.

LEARNING OBJECTIVES

On completion of this 3 – Day course, participants are expected to have gained:

• Knowledge and Skill of the Structured Approach to Trade and Commodity Finance;
• A Practical Understanding of Risk and Commercial Priorities of Lenders and Borrowers in International Finance;
• Understanding of Trade and Commodity Financing Instruments;
• Knowledge of Commodity Trading;
• Identification of Commodities Exchanges;
• Using of Irrevocable, Confirmed and Back-to-back Letters of Credit to meet the Objectives of Buyers and Sellers; and
• Techniques of Hedging Against Changes in Commodities’ Value.