Global Financial Relations:

• The institutions
• the currency markets
• the debt markets
• the equity markets

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

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Pre-Workshop Reading:

• Selections from World Development Report  
• Exchange Rate Regimes: Is the Bipolar View Correct?
• The Foreign Exchange Market -- An Introduction
  
• The Corporate Hedging Process

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. 

Reading:

• The US Leveraged Loan Market: A Primer
• World Bank, Emerging Market Eurobonds
• What the Ratings Mean

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
Assignment: 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?

Readings:

• Risk in the context of bond and equity portfolios
• A Note on Private Equity in Developing Countries (order from HBSP)

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? 

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)?

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.