INTRODUCTION
Loan structuring is simply designing the loan to fulfill the financing requirements of the borrower while simultaneously attempting to protect the lender against loss resulting from the failure of the borrower to repay the debt and the interest and fees thereon.
Loan structuring involves several elements, including purpose, amount, collateral and type of loan, risk recognition and mitigation, pricing, and financial covenants. All of these elements must work for both the borrower and the lender within the two definitions above.
Loan & Transaction Structuring Masterclass Training Course aimed at mid-level corporate bankers, analysts, product and client servicing and support teams wanting to gain an understanding of how credit assessment, loan structuring, cash flow analysis and loan covenants can be used effectively to ensure corporate client borrowing needs are matched and serviced by the appropriate bank loan facility.
Participants are not expected to be lending experts but a basic understanding of bank lending products and some lending exposures would be helpful.
OBJECTIVES
At the end of the Loan & Transaction Structuring Masterclass Training Course, you will be able to:
dentify the key elements of credit risk
Understand the working capital cycle of a business
Measure, quantify and evaluate the actual borrowing needs of the client (lend them what they need as opposed to what they want or think they need).
Assess the risk of lending the client what they actually need
Understand the difference between short, medium and long term loans and the risk profiles
Analyse the cash flows the source of our repayment over the length of the loan
Select the most appropriate lending structure
Decide whether security is required
Select appropriate documentation and loan covenants to manage the loan
Learn how ongoing management of the loan is vital
Be clear that the practice of following the bank s money must always be implemented
WHO SHOULD ATTEND ?
Loan & Transaction Structuring Masterclass Training Course, is ideal for:
Financial decision makers in corporations
Bank credit officers
Compliance officers
Investment bankers
Management consultants
Bond credit analysts
Fund managers
Treasurers
COURSE OUTLINE
Day 1
Introduction To Credit Risk
What is credit risk?
The different types of credit risk
Sovereign Corporate Retail Systemic Counterparty
The current lending environment
Risk appetite statements and their impact on lending strategy
How do we assess, measure, manage and mitigate credit risk
The three methods of calculating credit risk, standardised, foundation and advanced IRB
The revised standardised approach
The impact of IFRS 9
Lending Refresher overview
Definitions & basic lending principles
Lending policies, lending strategies, lending systems
Data/information collection
www.lpcentre.com
Approvals, security, drawdowns
Management & monitoring systems
Day 2
The Credit Risk of Specific Financial products
Loans and overdrafts
Term loans
Project finance
Construction finance
Private-public partnerships
Government and corporate bonds
Equity and mezzanine debt
Credit derivatives
Counterparty exposure
Off-balance sheet commitments
Trade finance
Mortgages
Credit cards
Day 3
The Working Capital Cycle
Definition
Understanding the mechanics
Seasonal or non-recurring cycles
The role of bank finance
The role of the overdraft
Understanding break-even analysis
Understanding bankers cash flows
How to lend in support of the cycle
When an overdraft becomes a medium-term loan
Managing multiple cycles
www.lpcentre.com
Day 4
The Basic Principles of Lending
Appraisal techniques
Credit assessment
Business clients
Corporate Clients
Private Wealth Clients
Trade Finance
Group credit appraisal
Development finance
Project finance
Establishing the borrower's actual needs
What do budgets and cash flows actually measure
Short, medium and long term funding needs
Short medium and long term lending products
SWOT analysis
Basic principles
Data collection, refining and perfection
Evaluation backtesting
Selecting the appropriate lending mix in practice
What goes wrong
Day 5
Introduction to Credit Risk Strategy
Measuring credit risk in structured loans
Portfolio theory and correlation concepts
Contagion risks
Liquidity assumptions
The importance of time
The different lending maturities
Short term finance
Medium-term finance
Long term finance
Working capital finance
Trade finance
Project finance
The risks
Best practice
What goes wrong
Day 6
Understanding cash flows
Definitions
Bankers cash flow
What do we use them for
The Rule of 72
Discounted cash flow, NPV & PDV
Are medium-term cash flows useful tools
What are the pitfalls
Where does it go wrong
Stress testing and scenario analysis
Day 7
Introduction to Lending structures
What facilities does the client need
What are we prepared to lend
Is this enough
Matching lending to cash flow
Matching lending to use of funds
Lending cycles
Economic cycles
Management and monitoring systems
Cash flow monitoring
Recovery management
www.lpcentre.com
Day 8
Bank security
Why do banks take security
Does it achieve recovery by itself
We do lend unsecured
Security does not improve the underlying deal
Why take it then
Safety net
Risk transfer
The importance of guarantees
Type of security
Completion and perfection of security
Independent and direct bank control
Monitoring security post lending drawdown
Best practice
What goes wrong
Day 9
Loan Documentation
What do we need
Best practice
The minimum
The ideal
Covenants
Undertakings
Key clauses
Managing the loan
Regular scrutiny
Report processes
What goes wrong Day 10
Why is this necessary
How do we do it
The role of the CRM
The role of Credit & Risk Management Systems, Processes
Best practice
What goes wrong
IN-HOUSE TRAINING
LPC Training is capable of conducting this training programme exclusively for your delegates. Please e-mail us on admin@lpcentre.com for further information and/or to receive a comprehensive proposal.
DOCUMENTATION
High-Quality material has been prepared by the LPC team for distribution to delegates. In addition, a special note pad to facilitate note-taking will be provided.
CERTIFICATES
Accredited Certificate of completion will be issued to those who attend & successfully complete the programme.
SCHEDULE
Our Course timings commence at 09:00 and conclude at 13:00.
REGISTRATION & PAYMENT
Please complete the registration form on the course page & return it to us indicating your preferred mode of payment. For Further Information, please get in touch with us.
CANCELLATION AND REFUND POLICY
Delegates have 14 days from the date of booking to cancel and receive a full refund or transfer to another date free of charge. If less than 14 days notice is given then we will be unable to refund or cancel the booking unless on medical grounds. For more details about the Cancellation and Refund policy, please visit www.lpcentre.com/terms-and-conditions/
TRAVEL AND TRANSPORT
We are committed to picking up and dropping off the participants from the airport to the hotel and back.
LONDON
Oxford Street Offices: London - Oxford Street 25 N Row, London W1K 6DJ
+44 (0) 20 36 916 970
West London Office: 47 49 Park Royal Road London NW10 7LQ +44 (0) 20 80 900 464
info@lpcentre.com
DUBAI
Business Bay - Marasi Drive Churchill Tower commercial1, Office 107 +971 4 421 4616
dubai.training@lpcentre.com
KUALA LUMPUR
No. 03-06-05, UOA Business Park, Jalan Pengaturcara U1/51A, Section U1, Kawasan Perindustrian Temasaya, 40150 Shah Alam, Selangor
+60 19-305 5694
www.lpcentre.com
www.lpcentre.com