Certificate in International Trade and Finance

International Demand and Contract Guarantees / Bonds

• Scope and Application – an introduction (suretyship v. demand guarantee)

• Indemnities versus guarantees

• Different types - Bid, Performance, Advance payment, Warranty and Retention bonds

• Rules governing guarantees and bonds

• Legal jurisdiction and expiry date issues

• Value of using URDG 758 – ICC Rules for demand guarantees

• Impact of non-bank competitors – COFACE, Euler Hermes

 The Essential Differences Between Guarantees and Standby L/Cs

• Guarantees in trade finance
• Case studies and examples of performance bonds, bid bonds, retention money guarantees and advanced payment guarantees
• The mechanics of standby contemporary issues
• Case study: Defining the products by example
• THE HYBRID: A practical case study reviewing the risks inherent in the conditional guarantee and standby being utilised as payment mechanisms

Forfaiting and Factoring

• Single receivable forfaiting market
• Mechanics of forfaiting
• The political risk reality of forfaiting
• Forfaiting deferred payment L/Cs
• Contemporary models
• Forfaiting and factoring compared
• Forfaiting interest calculations
• Jumbo L/C risk sharing, sales and distribution
• Structured single export

Import / Export Documentary Collections

• Principal parties – roles and responsibilities
• Benefits to importers and exporters of Documentary Collections
• Relationship between principal and bank(s)
• Role of banks (incl. correspondent banks/agency arrangements)
• Legal and practical issues re the duties of the banks involved in handling collections
• Conditions for release of documents
• Procedures for Protest of Bill of Exchange (B/E) and underlying risks
• Complexities of the ICC Uniform Rules for Collection (URC 522)

Structured Pre-export Finance

• The fundamental principles of "tolling" finance deals
• Case studies in securitisation and pre-export finance structures
• Timing and an introduction to option financing