1. General information
1.1 Bank overview
Societe Generale is a French multinational banking and financial services institution founded in 1864 and headquartered in Paris. There are three main divisions: retail banking, global banking and investor solutions, international banking and financial services.
Retail Banking in France covers the services, which are provided by the bank to individual customers in France. This can be savings and transactional accounts, mortgage, personal loan, debit and credit card.
Global banking and investor solutions include Corporate & Investment Banking, Asset Management as well as Private Banking and Securities Services, focusing on long-term relationships with Corporations, Financial Institutions, Public Sector,
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Societe Generale is presented in 42 countries with 63000 employees. International retail banking and consumer network serves over 18 million individual customers, professionals, institutions and associations.
I was working in the global banking and investor solutions division. The subsequent subdivisions are presented below: Societe Generale Corporate & Investment Banking brings together 10500 employees across 36 countries. SGCIB (the acronym) assists corporations, financial institutions, public sector institutions and family offices, meeting their needs in terms of investments, capital structure optimization and capital raising.
One of the roles of Societe Generale Corporate & Investment Banking is Global Finance. It supports the clients (mainly corporate clients, but also financial institutions, local authorities, sovereigns as issuers or borrowers) to find funding in order to help them grow and develop their business. This is called Structured finance – the sector of finance that helps transfer the risk using complex legal and corporate entitites.
1.2 Structured finance
Structured finance subdivision includes: 1) Natural resources, 2) Export Finance, 3) Infrastructure and Asset Based.
One can ask a question – why do we need structured finance? There are several reasons for
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SPV or “special purpose vehicle” is an entity which is used to isolate risk. It is usually created in tax havens, where is it can provide the tax reduction schemes. Technically, this is no more than an intermediate company.
In the same time the SPV signs a contract with the final offtakers (usually, international trade companies, like Glencore).
2) On this stage the there is an assignment of rights under export & offtake contracts between the SPV and the facility agent (big international bank).
3) The loan is transferred to SPV from the facility agent. Now the exporter can use it.
4) The proceeds from the oil deliveries are transferred from the final offtakers to the SPV offshore collection account. The facility agent has an access to this account.
5) Debt is repaid from the SPV collection account to the borrower’s collection account.
Prepayment is another very common form of financing. Prepayment is frequently used structured financing solution in the emerging countries. Its main features
First, when a creditor (ICE) extends credit to a debtor (Top Quality) and takes a security interest in some property of the debtor, Top Qualities inventory in this case, it is called a secured transaction. The inventory is then considered collateral for the financing that ICE provided for Top Quality, which was made clear in the financing statement that ICE filed. Any secured transactions where personal property is used as collateral is governed by Article 9 of the Uniform Commercial Code. The UCC was revised in 2001 to better adhere to modern times, and since this case took place from 2007 to 2009, we will be applying the revised edition. There are many sections of Article 9 that should be considered when examining this case. First, the filing of a financing statement, form UCC-1 in Article 9, should be confirmed as filed with the appropriate state office. Once this has been done, confirming the attachment of Top Quality’s inventory to ICE, we can then look to confirm that the initial sale to Chrisman was paid in full to Top Quality, which it was. If this were not the case, ICE would be entitled to the remaining sale proceeds. Now we move on to the requirements of a buyer in the ordinary course of business, per Article 9 of the UCC. According the textbook, “A buyer in the ordinary course of business who purchases goods from a merchant takes the goods free of any perfected or unperfected security interest in the merchant’s inventory, even if the buyer knows of the existence of the security interest” (Cheeseman). The textbook then continues to explain that this rule is necessary because buyers would be reluctant to purchase goods if the merchant creditors could recover the goods if the merchant defaulted on the loans owed to secured creditors. These statements come from the Revised Article 9, section 320(a). This is based on the idea that the buyer purchases in good faith, meaning that they are
Any stockholder signing the Letter of Transmittal “irrevocably and unconditionally releases, acquits and forever discharges” the Releasees from:
SPEs are commonly used by companies to isolate financial risk, hide debt. Under normal circumstances, the company will transfer assets to the SPE SPE-owned assets management or use of a large-scale project, in order to achieve a series of goals stenosis did not put the entire company at risk. In US GAAP 140 say that a qualifying SPE shall not be consolidated
The large-scale multinational financial giants are probably represented by the renowned investment banks such as Goldman Sachs, UBS, D...
Furthermore, the new entity had a solid capital structure with 40% equity and also 43.3% subordinated debt
SS&C is primarily a software company which markets and sells its products/services into seven markets: Insurance entities and pension funds, Institutional asset mgmt, Hedge funds and family offices, Financial institutions (retail banks credit unions), Commercial Lending, Real Estate Property Mgmt, and Municipal Finance. In addition to software, SS&C also provides accounting outsourcing to outside firms.
Debt financing has both advantages and disadvantages. Debt financing is a business’ way to start up, expand, or recover by borrowing money from a preson or company. The money borrowed has to be paid back along with the interest that was accrued during the length of time the loan was carried out. This option is great for company’s that do not want investors. Debt financing is beneficial because the loaners do not often get involved with the company or any decision making within the company. The downfall is the risk that is assumed with the debt which is, the company may not be able to pay back the loaner. In that case, the loaner would go after the owner or partner personally. There are many forms of debt a company is allowed to take on, such as ‘venture’ debt, even if they are a high-risk corporation. ‘Venture’ debt is a form of senior debt ...
Finding the perfect capital structure in terms of risk and reward can ensure a company meets shareholder expectations and protects a firm in times of recession. Capital structure refers to how a business puts its money to “work”. The two forms of capital structure are equity capital and debt capital. Both have their benefits and limitations. Striking that perfect balance between the two can mean the difference between thriving versus trying to survive.
After completing my graduate degree, working as a financial consultant in a multinational enterprise is my dream striving to come true. Endless conflicts with partners, continual misunderstandings with clients, and mutual distrust between parent company and subsidiaries would often happen in multinationals.
Global segment include relevant new global markets, existing market that are changing, important international political events, and critical cultural and institutional characteristic of global market. When company entering the global, it automatically can increasing number of people believe or consumer in the multiple nation and this si...
Barclays group PLC is one of the largest financial providers in America, Europe, Asia, Australia, Africa and Middle East. , It which is mainly engaged deals with credit cards, retail banking, investment banking, corporate banking, and wealth management. The bank is made up of investment and corporate banking, global retail banking and wealth management, each of which has several business units (Burn, Cartwright &Maudsley, 2009).
For an organisation to rise fund, they usually tend to look at the stock market and capital market to do it so. This is two markets are usually seemed similar by the investors as they both contributes to the development of an economy. But there are significant difference between them. The capital market is a market that consist of stock market as well as the bond market. As a result, the capital market provides a long-standing finance using the debt capital and the equity capital. Capital markets divided into two sectors known as primary markets and secondary markets. The primary market is where securities are issued for the first time whereas the secondary market is where securities that have been already issued are traded among investors (Difference...
The capital structure of a firm is the way in which it decides to finance its operations from various funds, comprising debt, such as bonds and outstanding loans, and equity, including stock and retained earnings. In the long term, firms seek to find the optimal debt-equity ratio. This essay will explore the advantages and disadvantages of different capital structure mixes, and consider whether this has any relevance to firm value in theory and in reality.
Sources of finance are the different methods for a business to earn and obtain money. There are lots of ways to obtain money but two large basic sources of finance, which are the “owner’s capital” and “capital borrowed”. They are also called internal sources of finance and external sources of finance. In those sources, they are mainly divided in two groups, which are short-term sources of finance and long-term sources of finance.
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)