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Advanced Structured Trade & Commodity Finance

2 Part Course  |  Learn more about the role of structured trade and commodity finance at an advanced level

A view of the Earth from space at night showing the lights of cities and towns

A one-day course presented over two-half days in a virtual class from 9:30am to 1:00pm UK time

Advanced Commodity Finance Course: Day One

Session 1: The Markets

  • COVID – latest developments
  • Brexit – Partly forgotten but now a live issue
  • US elections
  • US trade policy
  • A high-level overview of:
    • The markets
    • Commodities
    • The key players
    • Producers
    • Merchants
    • Processors
    • Transportation Services
    • Insurers
    • Banks
    • Specialist funders
    • General Trade finance overview – including the latest COVID news
  • Current Trends 

Session 2: Global Players

  • Who are the key players?
  • The Key sectors:
    • Agri & Food
    • Oil & Gas
    • Power
    • Mining & Metals
    • The rise of Green commodities
  • What are the key risks involved?
  • How do traders make money?
  • Who are the main providers of finance?
  • Strategic activities of key merchants?
  • Case Study: Commodity market course delegates are asked to consider the rise and fall of a leading commodity trader and establish what risks can be identified with the benefit of hindsight and what lessons can be learned. 

Session 3: Financing Techniques

  • Open Account
  • Collections
  • L/C’s
  • Escrow and advance payments
  • Receivables and Invoice Discounting
  • Innovations:
    • Reverse factoring
    • Buyer centric solutions
    • Seller Centric solutions
    • Forfaiting
    • UPAS
  • What are the risks?
  • What are the attractions?
  • What is a “good” structure and what makes it “good”?
  • Case study: An example of an emerging market deal 

Session 4: Supply & Value Chains

  • Following the Value chain
  • Risks, mitigants & controls
  • Opportunities, strengths & attractions
  • Upstream, midstream & downstream structures
  • Pre-financing, pre-payment and tolling structures
  • Country risks
  • Counterparty risks
  • Bank risks
  • Ownership & Control issues – the value of a trust deed
  • Licenses, export quotas, currency controls, tariffs and other barriers
  • Recourse:
    • Full
    • Part or limited
    • Non-recourse
  • What can go wrong? The signs and the mitigants
  • The role and value of security
  • The role and value of insurance solutions
  • Case study: Real Life Example of a traditional pre-payment structure 

Session 5: Risk Management

  • Using documentation:
    • Contracts – Financial & Commercial
    • Tri-party agreements
    • Liquidated damages
    • Transport documents
    • MMTD & BoL’s
  • Understanding price mechanisms
  • Hedging techniques
  • Assessing the trading book and its inherent risks
  • Financing Initial and Variation Margin
  • Case study: Example of an RBL

Day One Commodity Market Course Wrap-up

Advanced Commodity Finance Course: Day Two

Session 6: Financing Commodities

  • Inventory finance
  • Borrowing Base
  • Warehouse Finance – the risks in practice
  • Repurchase agreements – pros & cons
  • Commodity contracts
  • Risk analysis of commodity flows
  • Risk analysis of key parties
  • Case study: Example of a borrowing Base Facility 

Session 7: Due Diligence & Monitoring

  • The various options
  • Risk-based approach
  • Assessing key risks
  • Considering key risk mitigants:
    • Performance risks
    • Country risks – confiscation, embargo, currency etc.
    • Corporate risks – financials, cash flow, borrower, supplier, logistics etc.
    • Payment risks
    • Trade instrument risks
    • ‘Legal risks – jurisdiction and local law
    • Anti-money laundering (AML) risks
    • Sanctions risks
  • Loan origination, appraisal, approval and commitment processes
  • Syndications, forfeited and other shared facilities
  • Monitoring and control options
  • Case study: Major commodities in Indonesia and Europe

Session 8: Innovation

  • Blockchain
  • DLT
  • AI & Machine Learning
  • What are the advantages?
  • Game changers or a “flash in the pan”?
  • What are the risks?
  • What has happened in practice?
  • Case study: A block-chain example. 

Session 9: Non–Bank & Other Specialised Lenders

  • What are the alternatives?
  • Commodities Funds
  • Mezzanine Finance
  • How can banks work with these lenders?
  • IFC, World Bank. USAID
  • ECA’s
  • Case study: Considering the consequences of pushing innovation to the limit. What went wrong, why and how could it have been spotted/prevented? 

Session 10: Mores Specialist Commodities 

  • Protein
  • Green
  • Aquaculture
  • Strengths and Weaknesses
  • Opportunities and threats
  • Mitigants
  • Attraction of participating

Session 11:  Price Risks 

  • COVID’s huge influence on oil prices
  • Price risk management
  • Traded versus OTC
  • Cash and futures markets
  • Contracts to hedge
  • Bank vs customer requirements/benefits 

Session 12: Open Forum & Commodity Market Course Conclusion

Commodity training courses at Redcliffe are delivered by our trainer with a highly successful, long and varied “fast track” career at Lloyds Bank. This led him to a very senior management position in the bank’s private banking and wealth management division at an early age. He was “headhunted” to join a merchant bank at the main board director level and now has over 40 years of trade finance experience.

Since retiring, this commodity market course trainer has been a freelance trade finance training consultant and is currently an external Master Trainer at HSBC. He has delivered major trade and structured trade finance-related courses for them and has also taught similar programs at the Bank of China.

He is a highly adaptive, hands-on and highly sought-after trade finance trainer who always receives excellent feedback from delegates. He is comfortable training at any level of seniority and experience, from “black belts” to novices. In addition to his trade finance and commodity market course specialism, his expertise includes but is not limited to Commodity Risk Management, Trade Finance, Regulatory Compliance, FCC & AML and all aspects of Corporate, Private and retail Banking. He is also a highly experienced soft skills trainer and has completed numerous “train the trainer” assignments.

Our commodity training courses cover the following:
  • Challenges and risks of managing physical commodities all along the value chain including producers, merchants, processors/consumers as well as the various stakeholders.
  • Enhance and develop an advanced knowledge of today’s Commodities markets. Participants, lending structures, risks and mitigants, as well as innovation trends will all be covered in this commodity finance course.
  • Options for an appropriate degree of due diligence.
  • Recognise that the risk profile and the due diligence requirements can be omitted by counterparties, the context, the value chain and the lending structures.
  • Understand the relative strengths and weaknesses of structured deals (from bilateral transactional to more complex syndicated facilities).
  • The pros and cons of technology innovations and solutions in STCF – Blockchain, DLT, AI & Machine Learning.
  • Understand that structured commodity trade finance as a risk mitigant is all about creating the right balance between risk and reward.

  • Redcliffe Training is a long-established business and is a leading provider of commodity finance training. We have a highly successful track record stretching back over 20 years.
  • Redcliffe has earned the appointment by two of the world’s biggest trade finance banks as a preferred supplier with Master Trainer status. This ensures we can keep pace with up-to-date changes in the marketplace.
  • Redcliffe has also been invited to deliver this commodity finance course to both the IFC & the World Bank, G SIBS, ECA’s (including Atradius & Oracle) large, medium and small institutions as well as several state-sponsored development bodies. These clients have widely differing needs and risk appetites so we do know our markets and the specific needs of those that operate within them.
  • We don’t use academics – all our trainers are hands-on practitioners with vocational experience at a very senior level.
  • Our commodity market course is designed to help delegates ‘hit the ground running’ and add value immediately to their roles upon completion of the training.
  • We are always judged by our results and our training feedback has been consistently excellent.
  • Our structured trade and commodity finance course director has over 40 years of structured trade and trade finance experience and is a hands-on “black belt” who will add value by relating his own experiences.
  • We have developed highly interactive and enjoyable case studies to enhance the learning points. All delegates report that these are a high point.

We approach our commodity training courses from an advanced level. We consider what structured trade finance means in practice and to what extent it can be applied. Most lenders have only three or four broad client segments; Global and Investment grade clients, large corporates, the rest and SMEs. When it comes to structuring, each sector requires a different approach because risk and reward characteristics vary considerably.

Commodity markets have seen unprecedented price fluctuations in recent times making the sector much more challenging. Several previous market leaders have withdrawn from some sectors completely. This commodity finance course will explore these challenges and ultimately recognise that the whole sector remains inherently riskier than it was.

This highly interactive structured trade and commodity finance training will examine and explain the key concepts involved in structured trade and commodity finance at an advanced level. It is not a suitable workshop for beginners.

Whether you seek a refresher or a detailed overview, we are certain our commodity finance course can help you and will help add value to your skill set.

  • The trainer was good, informative, knowledgeable and thorough. It covered a very wide array of topics and acted as a good refresher to knowledge. I would recommend it for anyone looking to learn each business in trade finance from the beginning of the working capital cycle, to the end.
  • The trainer is a really nice guy and expresses himself well, always explains things well.
Number of places:
Part 1

£ 795.00

Number of places:
Part 2

£ 795.00

Discounts available:
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