Debt Management Course

COURSE OVERVIEW

INTRODUCTION

Why is debt management important? When it comes to raising finance, a company has several sources for the acquisition of funds. These sources can be broadly categorized into debt and equity. Equity share and preference share issues are a popular way of raising funds through selling shares of the company to the general public and institutional investors.

Methods of debt financing include the issue of debentures, term loans, trade credit, etc. Within the business sphere, both debt and equity have their advantages and disadvantages. No single avenue is considered best. For this reason, no company prefers to finance its investment through a single source.

Often businesses try to find an ideal mix between debt and equity. However, this is where it gets tricky. Debt financing up to a certain magnitude can fetch some benefits for the business. Debt is a tax-deductible expense that allows businesses to reduce their tax liability.

DURATION

10 Days

WHO SHOULD ATTEND?

• Budding entrepreneurs, start-up founders
• Financial managers, credit managers
• Departmental heads, managers, executives
• Financial analysts
• Financial advisors
• Credit insurers, brokers
• Investors

COURSE OBJECTIVES

On successful completion of the Debt Management course, participants shall be able to benefit their organization in following ways:

• Devise a dependable debt management strategy for their organization and help it achieve its debt-free target
• Study how sovereign lending and debt market performance affects the market and their organization
• Identify various credit risk, interest rate risk, inflation rate risk prevalent in the market and construct a contingency plan to mitigate it
• Negotiate on behalf of the organization for better credit terms and maintain a sound relationship with its creditors
• Help the organization in improving their credit rating by ensuring timely payment of debt obligations
• Select best-suited debt financing options available for the firm 

TOPICS TO BE COVERED

Module 1: Basics of debt management

• Debt financing
• Effect of debt on profits
• Benefit of debt financing
• Capital structure decision process
• Capital gearing
• Financial leverage- debt ratio, interest coverage ratio
• Strategies of debt reduction, debt restructuring, debt consolidation
• EBIT-EPS analysis
• Debt negotiation
• Debt trap

Module 2: Debt market

• Debt market segments: wholesale segment and retail segment
• Participants in debt market
• Secondary market for debt instruments
• Intermediaries of debt market

Module 3: Debt instruments

• Instrument features: maturity, coupon, principal
• Risks involved in debt instruments- interest rate risk, inflation risk, reinvestment risk, liquidity risk
• Instruments on the basis of modification of coupon: zero coupon, treasury scrips, floating rate bonds
• Instruments on the basis of modification of term to maturity: callable bonds, puttable bonds,
• Money market and capital market debt instruments
• Debenture and their types

Module 4: Risk management and credit rating

• Credit rating
• Financial indicators affecting credit rating
• Type of risks and establishing risk management framework- rollover risk, liquidity risk
• Risk management practices

Module 5: Sovereign lending

• Overview of sovereign lending and borrowing
• Debt sustainability analysis
• Debt indicators: external and fiscal indicators

Module 6: Valuation of bonds

• Bond values and yields: value of bonds with maturity, perpetual bonds
• Yield to maturity
• Yield curves: normal, flat, inverted, humped
• Flattening of yield curve
• Theories of the term structure of interest rates- pure expectation hypothesis, liquidity preference

Module 7: Public debt policy

• Formulation of public debt policy
• Public debt management
• Government borrowing policies
• Government guarantees

Module 8: Fiscal Policy and Balance of Payment

• Overview of balance of payment
• BOP elements
• Sources of imbalances
• Fiscal policy and fiscal deficits
• Fiscal sustainability
• Assessing and managing fiscal risks

METHODOLOGY

The instructor led trainings are delivered using a blended learning approach and comprises of presentations, guided sessions of practical exercise, web-based tutorials and group work. Our facilitators are seasoned industry experts with years of experience, working as professional and trainers in these fields.

All facilitation and course materials will be offered in English. The participants should be reasonably proficient in English.

CERTIFICATION

Upon successful completion of this training, participants will be issued with Steady Development Centre certificate.

TRAINING VENUE

The training will be held at Steady Development Centre. The course fee covers the course tuition, training materials, two break refreshments and lunch.

All participants will additionally cater for their, travel expenses, visa application, insurance, and other personal expenses.

ACCOMMODATION AND AIRPORT PICKUP

Accommodation and airport pickup are arranged upon request. For reservations contact the Training Officer.

Email:training@steadydevelopmentcentre.com

Mob: +254 718108851

TAILOR- MADE

This training can also be customized to suit the needs of your institution upon request. You can have it delivered in our Steady Development Centre or at a convenient location.

Payment

The course fee payment should be transferred to Steady Development Centre account through bank, 3 working days before commencement of the training so as to enable us to prepare better.

For further inquiries, please contact us on:

• Tel: +254 718108851
• Email: training@steadydevelopmentcentre.com

Our Upcoming Training Schedule