Canadian company seeks intl trade funding

Financial Proposal for Funding from a Canadian Company Involved in International Trade

Part 1 Rules and Evaluation

Not to exceed 10 pages and is done as a group assignment.

You will submit a financial proposal from a company for funding. For example, â€œWinpak is seeking a loan of $2.5 million at 5% annual interest to finance a $10 million transaction with F&N. You will write it from the perspective of the company, (you can write in third person) but include the â€œDecisionâ€ from the perspective of the bank. The company you choose must operate from Canada and be involved in international trade.

You will do this in two parts (Part 1 and the Final Report- see posted example of the final reports for all elements to include). The following should be included in Part 1.

1. Select a publicly-traded company as it is generally easier to find information on such companies.

2. Financial analysis is important - depending on the ask/structure you will need to focus your analysis on either short-term or medium-term analysis. Â Make sure you pick the correct one and use at least 3 financial metrics, which supports your position.

Company Description -Â What does the company do (2) -Â Product (2) -Â Mgmt (2) -Â Experience in trade (2) -Â Past positive trade transactions (2)	10
Opportunity -Â What were you able to negotiate as terms? Structure of the transaction, due dates, payment terms, (5) -Â Analysis of country you are trading with and who the buyer/seller is (5) - Why are you choosing this trade transactions, pros/cons, what are Â long term benefit to company (5)	15
Financing -Â Financial overview (5) -Â Analysis of fees and costs of this transaction (5) -Â Financial projections with this new transaction (5) -Â Possible Financing options (5) -Â What the company is asking from the bank and why this is the best solution (5)	25
Total	50

Part 2 â€“ Final Term Report Individual - 50 Marks (15% total grade). Please use the details and outlines from Part One â€“ Team report

Executive Summary -Â memo style that captures all relevant points of the report Be sure to briefly include from Team report/part one: Â·Â Company Description Â·Â The nature of the transaction Â·Â Why are you choosing this trade transactions, pros/cons, what are Â long term benefit to company Â·Â Structure of the transaction, due dates, payment terms, Â·Â Who the buyer/seller is	15
Risks and Risk Mitigation Strategies -Â Country risks -Â Buyer risks -Â Transaction risks -Â Financial Risks	10
Financing Proposal -Â Based on all the course content, all the previous work you have completed what do you need from the bank -Â How you will offer security to the bank -Â How you will mitigate the risks for the bank -Â Provide cost breakdown, financial analysis and borrowing costs Capabilities â€œWhy is this transaction going to work?â€ -Â History of trade experience -Â Management experience -Â Financial strength	10
Conclusion. The Bankâ€™s Decision. Write a formal credit memo from the Bank Account Manager to upper mgmt as to the deal structure, and why it is a good risk for Bank to undertake. -Â Will the bank do the deal, and explain why?	10
Appearance -Â Cover page: -Â Table of Contents -Â Appropriate section subheadings -Â Pages are numbered -Â Report has been edited for flow and uses one voice. -Â Referenced properly	5
Total	50

Final Layout: Â

Visual aids do not count towards the total pages unless they contribute valuable additional information that would not be covered effectively as text. Â Include visual aids if they are appropriate and properly referenced in your report. Â You must reference the source of any research, pictures, text or aids. Â

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