25812 Fundraising in International Markets
UTS: Business: Finance and EconomicsCredit points: 3 cp
Subject level: Postgraduate
Result Type: Grade and marksRequisite(s): 25741 Capital Markets AND 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 $AUD international bond issue.
Assessment
Assessment item 1: Assignment (Individual)
| Objective(s): | 1-3 |
| Weighting: | 40% |
| Task: | 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. |
Assessment item 2: Final Exam (Individual)
| Objective(s): | 1-3 |
| Weighting: | 60% |
| Task: | 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. |
Indicative references
Course Notes: Reading material consists of case studies and selected readings; these will be given out in class. Some of these will be referred to in class.
Fabozzi, F and Modigliani, F, Capital Markets — Institutions and Instruments, Prentice Hall 2nd Edition ,1996
Bruce R, McKern B, Pollard & Skully M, Handbook of Australian Corporate Finance, 5th edn, Butterworth (Ch 14), 1997
Chance DM, An Introduction to Derivatives Dryden 5th Edition, 2000
Webites
www.cfoasia.comwww.asiamoney.com
www.asiarisk.com
Journals
Euromoney
Corporate Finance
