25812 Fundraising in International Markets

Faculty of Business: Finance and Economics
Credit points: 3 cp

Subject level: Postgraduate

Result Type: Grade and marks

Requisite(s): 25741 Capital Markets OR 25765 Corporate Finance
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject examines practical aspects of raising funds in offshore markets. The evolution and structure of international financial markets is examined. Eurocurrency, debt and equity markets are covered in detail. Topics include international bond issues, equity link bonds and euro bonds.

Subject objectives/outcomes

On successful completion of this subject, students will be able to:

Understand international debt and equity markets
Apply techniques for raising funds in global capital markets
Evaluate international financing for various large multinationals.

Contribution to graduate profile

Australia is increasingly an open economy with a financial sector unfetted by international regulation. A subject devoted to international capital raising is a necessary compliment to those devoted to domestic capital markets.

Teaching and learning strategies

The subject will be taught using a combination of lectures and workshops. These classes will be supplemented with both printed and electronic learning materials and resources. The UTS web-based communication tool (UTS Online) will be used to share information and encourage interaction between staff and students. Students will also use appropriate computer software such as spreadsheets and word processors to complete assigned tasks.

Content

International Financial Markets - evolution, structure and relevance to Australia
Workings of Instruments in the Eurocurrency Debt Market, the deposit market and interest rates, borrowing instruments, international bond issues, equity linked bonds, FRNs, NIFs
International Equity and Euroequity Markets -types of international equity offerings; convertible Eurobonds, Eurobonds with equity and acquisitions
Arranging a $A International Bond Issue.

Assessment

Assignment (Individual)	40%
This will assess students' understanding of the concepts of fund raising in international markets. It will also allow students to demonstrate that they can use both spreadsheets and word processing packages to tackle practical problems. This assignment will allow students to demonstrate that they have met objectives 1-3.
Final Exam (Individual)	60%
This exam, which may consist of multiple choice and short answer questions, will test students' understanding of the theory and their ability to apply the theory to financial decisions. This will enable students to demonstrate that they have met objectives 1-3.

Recommended text(s)

Book of Readings

Indicative references

Valentine, T J, Allan, R H, Elstone, R and Locke, G. (1990). Introduction to Foreign Exchange Management, Allen and Unwin.