The fundamentals of Trade & Commodity Finance (TCF)

Course objectives:

• Identify, analyze and learn to manage risks related to Commodity trade
• Learn how to structure trade and commodity finance transactions
• Reinforce your understanding of the subject with practical sessions on “real –life “case studies

Who should attend?

• Trade Finance & Treasury professionals
• Commercial and Investment Bankers
• International Traders
• Risk Managers
• Legal advisors
• Auditors

Course program:

Day 1

• Commodities as a global business – Facts, figures and trends.
• Main commodity sub-markets: soft, hard, energy. Emergence of the LNG market.
• Impact of the Covid19 crisis
• Market players’ Overview:
  • Corporate producers. With special focus on Cargill and Bunge
  • Traders and brokers. With special focus on "the ABCD" and the Geneva market place
  • Commodity exchanges and main trading centers: Chicago, London, Paris, New York, Sao Paulo, Geneva, Dubai, Singapore
  • Logistic providers
  • Lenders: banks, non-banks, specialised investment funds
• Main payment and financing techniques:
  • L/C’s (including transferable, red clause and green clause);
  • Short term treasury lines to medium term finance: Pre Export Finance (PXF) with Case studies, Crop Finance, Supplier Credit
  • Reserve Based Lending (RBL) with case study
  • From transaction finance to corporate credit lines: Revolving Credit Facilities (RCF) and Borrowing Base credits (case studies)

Day 2

• Financing structures in commodity trade finance. Case studies in Pre–export finance and Post–export finance
• Risk and mitigants in the financing of commodity structured trade finance:
  • Political risk
  • Credit risk
  • Collateral risk
  • Legal/ Documentation
  • Shipment and Incoterms issues
  • Environmental Social and Governance (ESG)
  • Compliance Case study
• The role of Export Credit Agencies (ECA) and multilaterals. Case study
• How can the private insurance market be instrumental? Case study
• Derivative risk management: forward, futures, options on futures

Conclusion and final evaluation

Your seminar coach :

The seminar will be conducted by Sylvaine Chubert*, Executive Trainer and consultant in International Finance, France – the Netherlands

Ms Chubert has a twenty – year experience in International Banking, specifically in Structured Finance applied to export transactions as well as large project (Real estate) financing. She has worked for BNP Paribas (Paris and Amsterdam) in Commercial corporate lending, Rabobank International as Area Manager structuring international trade finance deals on Central and Eastern Europe and lately at Bouwfonds Property Finance and ING Real Estate as Senior Loan adviser, structuring, financing and advising on risk management of large (USD 50 to 500M) commercial R.E. projects. Sylvaine is Managing Director of SC Training & Consulting Sarl, a practice coaching banks, insurance companies and corporates on Financing and Risk management issues. Also, Sylvaine Chubert is Professor of Finance at EDHEC Business School and lectures in Structured Finance for Coface and Agence Française de Developpement. She holds a Master degree from Sciences Po in Paris and a Certificate of Management from the E.U.A University in San Francisco, USA.