Link to resources in finance
Link to Stern School of Business

Training Programme

Global Financial Relations:

  • The institutions
  • the currency markets
  • the debt markets
  • the equity markets
Day 1
The International Financial Markets and Institutions

Day 2
Global Bond and Debt Markets

Day 3
Equity Markets: Local and Global

Day 4
International Structured Financing Techniques

Day 5
Corporate Financial Restructuring in Developing Countries

Background Materials on Corporate Finance

Traduction française: s'il vous plaît essayer freetranslation com

Ian Giddy has taught finance at NYU, Columbia, Wharton, Chicago and in 30+ countries abroad for the past two decades. He was Director of International Fixed Income Research at Drexel Burnham Lambert from 1986 to 1989. The author of more than fifty articles on international finance, he has served at the International Monetary Fund and the U.S. Treasury and has been a consultant with numerous corporations and financial institutions in the U.S. and abroad. As a banker and consultant he has been involved in the growth of the ABS market in the USA, Europe and Asia. He is the author or co-author of The International Money Market, The Handbook of International Finance , Cases in International Finance, Global Financial Markets, Asset Securitization in Asia and The Hudson River Watertrail Guide.

Prof Ian Giddy
Stern School of Business
New York University
44 West 4th Street
New York, NY 10024

+1 212 998 0426

Workshop on Global Financial Relations
Dakar, Senegal

Prof. Ian Giddy
New York University

Global financial markets: the foreign exchange and international money markets, and the domestic and international loan, bond and equity markets

Schedule and Assignments

Day 1
The International Financial Markets and Institutions
TimeTopic Remarks
9:00-9:45Review of the courseAssalamou aleikoum!
9:45-10:30The international financial institutions and currency system
10:45-13:00Exchange-rate systems and currency devaluation riskCap des Biches case study
14:00-15:30The international money marketEcobank cross-currency funding exercise
15:45-17:00Currency risk and hedging instrumentsGroup work on Ivoire Rubber case study
17:00-18:00Understanding currency riskIvoire Rubber discussion

Pre-Workshop Reading:

Background Reading (Not required): "Reforming the International Financial Architecture" ; International Organizations and financial stability; regional trade blocs; European Union and WAMU

Case Study: Cap des Biches (A)
Assignment: What should the management of GTI-Dakar do in case there is a devaluation of the CFA franc?

Case Study: Ecobank's cross-currency loan funding
Assignment: You have been asked to fund a 6-month GBP3 million loan made by your bank's London branch. Assuming the bank can borrow at market rates in any of the major money markets, which is the most cost-effective funding source?

Case Study: Ivoire Rubber
Assignment: How can Ivoire Rubber hedge its exposure to the Mexican Peso?

Evening reading: Connexion Syndicated Loan
Assignment: Would you advise Connexion to use a syndicated loan to finance its prospective acquisition?  Please read this deal carefully, to see how such a syndicated loan is structured and priced. 

Day 2
Global Lending and the International Bond Markets
TimeTopic Remarks
9:00-10:30The challenges facing international commercial and investment banks
The international syndicated loan market
Group work on Connexion case study
10:45-13:00Risk and pricing in syndicated loansDiscussion of Connexion case study and West African applications
14:00-15:30The international bond marketExamples of bond issuance: South Africa
15:45-17:00Project financeGroup work on Azito case study
17:00-18:00Project financeDiscussion of Azito case study


Background reading (not required): The financial markets and Bonds

Group work: Connexion Syndicated Loan
Assignment: What are the ways in which a company like Connexion can finance its prospective acquisition? What important elements are shown in the term sheet? How was it be priced and structured? What was the return to different banks in the deal?

Case Study: South Africa Eurobond and Domestic Bond
How did would an issuance like the Eurobond work? Explain the steps. How would the investment bankers set the interest rate on the bonds? How would they determine the fees?What is South Africa's bond rating? How would a company get a bond rating?

Case Study: Azito Power Project
Assignment: What is "project finance," and did Azito use the project financing technique to finance its investment? As a banker, how would you evaluate the risks and rewards of lending to Azito? Explain how it is possible for a project such as this to be financed with a high debt-equity ratio, even though the debt is in dollars and the revenues are in local currency.

Evening Study: Deutsche Telekom
Assignment: Read the questions. How did the equity offering work? What was the role of the banks in the placement?

Day 3
Equity Markets: Local and Global
TimeTopic Remarks
9:00-9:45Equity investment and equity financing: portfolio management
Exercise: equity returns and the cost of capital
9:45-10:30Initial public offerings
Group work and discussion of Deutsche Telekom IPO
10:45-13:00Equity investment and equity financing: the cost of capitalExercise: evaluating the cost of equity for DT
14:00-15:30Equity offerings in the African context
Telkom South Africa's privatization and IPO
15:45-17:00Understanding ADRs
Telkom South Africa's ADR
17:00-18:00Private equity financingGroup work on Mount Cameroon Ecotours case


Background reading (not required): Equities and Depositary receipts example and explanation.

Group work: Deutsche Telekom
Assignment: How did the equity offering work? How would you price an IPO? What would be the right form of pricing and distribution for this kind of company?

Case Study: The IPO of Telkom South Africa and Telkom ADR
Assignment: What kind of equity offering and pricing is needed to make the company attractive to foreign as well as equity investors, domestic and foreign? What kind of rate of return would such investors expect?

Case Study: Mount Cameroon Ecotours
Assignment: Mount Cameroon Ecotours, an ambitious "Adventure Travel" company in West Africa, was seeking advice on the next stage of financing its growth with private equity. What do you recommend? 

Evening Study: Banpu Convertible Bond
Assignment: How did this baht-denominated convertible bond work, and where did it fit in with Banpu’s recapitalization?  When should a company issue bonds (or arrange a term loan) with stock warrants? 

Day 4
International Structured Financing Techniques
TimeTopic Remarks
9:00-9:45Private equity and structured financingDiscussion of Mount Cameroon Ecotours
9:45-10:30Structured financing techniquesGroup work on Banpu Convertible Bond
10:45-13:00Structured financing techniques and pricingDiscussion of Banpu Convertible and West African applications
14:00-15:30Asset-backed securitiesFCB: Example of ABS structure
15:45-17:00Securitizing future flows
Aerolíneas Argentinas
17:00-18:00Structured finance and debt capacity analysisGroup work on Cap des Biches (B) case study

Reading: " Securitization of Future Flow Receivables: A Useful Tool for Developing Countries"

Group work: Banpu Convertible Bond
Assignment: How did this baht-denominated convertible bond work, and where did it fit in with Banpu’s recapitalization? How did the company deal with currency risk? How did they deal with foreign ownership  When should a company issue bonds (or arrange a term loan) with stock warrants? 

Case Study: Finance Company Bhd
How can FCB use securitization to fund its expansion? How could this technique work in West Africa?

Case Study: Aerolíneas Argentinas
Assignment: What happened to Aerolíneas Argentinas? What happened to investors in the company's US$100 million "future flow" securitization?

Case Study: Cap des Biches (B)
Assignment: Can the managers of GTI-Dakar succeed in financing their acquisition of the company through a leveraged buy-out (LBO)?

Day 5
Corporate Financial Restructuring in Developing Countries
TimeTopic Remarks
9:00-9:45Corporate financial restructuring: leveraged buy-outs (LBOs)Discussion of Cap des Biches (B)
9:45-10:30Leveraged buy-outs and restructuringGroup work on Cap des Biches (C)
10:45-13:00Helping a company in distress restructure its financingDiscussion of Cap des Biches (C)
14:00-15:30Restructuring and exit strategies to realize value
Cap des Biches (D)
15:45-17:00Pricing and financing mergers and acquisitionsAshanti-Bogoso case study
17:00-18:00Conclusion of moduleReview and feedback

Reading: Valuing a Business

Case Study: Cap des Biches (C)
Assignment: CDB, two years after the successful LBO, is having difficulty meeting its debt service obligations. The banks are putting pressure on management to make a restructuring proposal. Please try to devise a way in which the debt could be restructured to keep the banks satisfied and keep the company alive. 

Case Study: Cap des Biches (D)
Assignment: CDB, after its debt restructuring, has achieved a turnaround. Net cash flows are now positive and steady, and the shareholders are looking for ways in which they can realize the benefits of their investments. Should they pay a dividend, buy back shares, or sell the company?

Case Study: The Ashanti-Bogoso Merger
Assignment: Quantify the synergies and other effects of a merger between two West African companies, and assess whether the shareholders of each company will be better off, or worse off, after the merger. 

Background Materials
Background Materials on Corporate Finance may be found at the following website:
Excel spreadsheets for Corporate Finance and Valuation may be found at:
And much more at: Resources in Finance

April 2005
Ian Giddy | | | | contact
Copyright ©2004 Ian Giddy. All rights reserved.