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FIN1200 International Trade Finance Major Project Term Report Description: The Term Report is about an international trade transaction or contract. It contains two components: 1) A 1page briefing note summary of the transaction, the critical issues, and the ultimate decision on whether to lend/invest or not. (50% of the Major Project grade) 2) A pitch video, pitching the transaction to a lending/investment committee. The video should be no longer than 5minutes. (50% of the Major Project grade) The Situation: You are working for a publicly traded international trade company, and you need some money to complete a transaction or contract. You will need to make a presentation to a potential investor, in this case a bank or Investor. The transaction could be to open a new office, acquire a company, make an export sale transaction, or other potential business opportunity. YOU MUST HAVE THE FINANCIALS TO DO THIS ASSIGNMENT. You can NOT choose the following companies: Tim Hortons Canadian Tire Rona Shoppers Drug Mart Second Cup Bombardier SNC Lavalin You can NOT choose the following destination countries: China Pakistan Bangladesh Nigeria India You will be graded on both sections at 50% of the total grade, and the sum of all the grades (written and presentation) for the two sections will be your total grade on the project. Part 1 The Briefing Note For this part, you will be preparing a ONE page Briefing Note of your financing proposal. Dont spend too much time on corporate history!! You will pick a publicly traded company. This company must be unique in the class, so ensure that you claim your company on Brightspace. If two students have the same company, the student who posted on Brightspace first will claim ownership of the company choice. Note: If you submit a paper on a company, which another student owns you will receive a grade of 0. It is vitally important that you ensure that youre working on a unique company not covered by another student. For the first deliverable, you will then submit a written briefing note to educate me about this company. A sample format of a briefing note is available for your review on Brightspace. Important Requirements: The submission must not exceed one page. You may include no more than 2 appendices which must not exceed one page (for greater clarity, one page per appendix, meaning the document package should be a maximum of 3 pages). If you are going to use appendices, they better directly tie into the information you present in the briefing note The company Description must represent that you understand how the company creates value, how they compare against competition, and to show and elucidate to me that you understand this business. To help you frame up your thinking, consider the following ideas: Your proposal will contain the following information as content that you need to convey through the briefing memo style: 1. X,Y,Z briefing information and superbly brief summary of company (no more than 3 lines, and this can be bundled into how you introduce the issue) 2. Description of Opportunity (should be in the issue description these 2 points should make up no more than 1015% of the total space of the paper) 3. Company Capabilities (financial and operational capability with respect to the opportunity, oftentimes put in the Rationale section) 4. Key Risks & Mitigating Factors 5. Rationale for Investor (Explain & Summarize the key reasons why the investor/decisionmaker should agree with your recommendation and proceed forward with the next steps. This is often called the benefits for the person / company) 6. KISS (which stands for Keep it Simple Summary) table at the end. For eg. Here is one that you might use when summarizing a credit request for a company involved in the sale of industrial equipment. Financial Ask: Term: Proposed Interest Rate: Country of Opportunity: S&P Rating of Country of Opportunity In terms of Style: Your proposal should have the following major headers and be structured as a briefing note: Issue: Whats the companys problem which is being solved by your opportunity. Eg. They are struggling with heavy fixed costs and tight global competition Recommendation: This is your proposed solution. This is your opportunity. Eg. Build a plant in Vietnam with a lower fixed cost, and lower variable costs to reduce cost load, while also positioning company to respond to South East Asia demand an area of growth for the company. Rationale: This is why your opportunity makes sense to solve the problem. This MUST include financial ratios / analysis to show that youre suggesting an opportunity which the company can actually execute on. Alternatives: This is where you identify real alternatives to your proposed opportunity Next Steps: This is where you will propose a financing structure / investment structure to accomplish your opportunity. You should include your KISS table at the end. Note: You are specifically being given one page and a big story to tell. Its vitally important that you are able to package your ideas in a succinct fashion. Failure to do this will result in significant grade reductions. You must use a font equal or greater than 10 point. Going over your page allotment will result in a 25% grade reduction. Note: The Opportunity you pick must be in another country (other than Canada) and it must be of a material size to the organization. Walmart (for example) wouldnt pitch for $250,000 loan from their bank. They might pitch for a $75,000,000 loan though. So make sure the opportunity you are presenting is correctly scaled relative to the size of the company (use the financials of your company to make that determination, if the deal is too big or too small relative to the financial capabilities of the company you will lose marks) Additional Details: References.This is standard in ACADEMIC Reports not necessarily in the same format as seen in realworld financial proposals. Since we are in an academic institution YOU WILL include them. Appendices The appendices provide outside support for the arguments presented in the financing proposal. They reassure the financier that the company is not just plucking numbers out of a hat. In addition, companies should include all their technical information in this section rather than in the body of the proposal, so that readers clearly have the option not to read it. Financiers are not specialists in every business and are more interested in the business case than in the technical issues. The firm should send a copy of the financing proposal to the potential lender before any meeting or interview. Project Tips: 1. Select a publicly traded company as it is generally easier to find information on such companies. If you are not choosing a publicly traded company, I have to approve your choice. 2. Choose a business activity that the company has already done somewhere else in the world and use that as a model for your financing proposal. If you want to do something new, something that has never been done before, see me as I have to approve your choice. 3. Although products are recommended, you can use a service with my approval. 4. To find a company, watch or read business news such as The Business News Network, Globe and Mails Report on Business, Wall Street Journal, etc

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