Hiring an external Training Service Provider, to provide and conduct training regarding credit risk and credit analysis with an emerging market focus

Background

The LDC Investment Platform

UNCDF accomplishes its catalytic investment activities through the LDC Investment Platform (LDC IP). The LDC IP provides the technical know-how to expand the deployment of capital instruments to a growing pipeline of companies and projects in the “last mile” in LDCs. The platform rests on UNCDF’s enterprise risk management and investment policies; strengthened due diligence processes for vetting and assessing risks of potential investment opportunities; investment monitoring systems; and dedicated and growing capacities to manage and oversee a portfolio of capital investments and ensure robust accountability. The platform has a team of investment professionals with significant transactional expertise in LDCs and impact investing backgrounds. They have a dual day-to-day role: (i) an advisory function to support UNCDF’s country teams in the structuring, the due diligence and the monitoring of the transactions (ii) a risk control function through an independent evaluation and risk appraisal for each transaction proposed by the country teams.

Overall, the aim of the LDC IP is to be part of an ecosystem that (a) demonstrates to domestic and international investors that LDC markets can and do generate returns, provide opportunities for successful investment, and merit the attention of a wider range of investors; (b) uses those demonstration effects to support policy and regulatory improvements and scale up of what works by other actors; and (c) helps a number of companies advance to the next level of growth where more commercial funding will replace the concessional funding.

Objective:

In order to develop and further enhance the skills and knowledge of the team of Investment Specialists at LDC IP, UNCDF is seeking the services of a Training Service Provider to provide and conduct training regarding the following overall areas with an emerging market focus: 

• The design of Loan structures and guarantee structures
• Credit risks and rating methodology 
• Financial statement analysis
• Macroeconomic indicators 
• Pricing of PD/LGD 
• Financial distress
• Restructuring and monitoring

The target to be achieved is to strengthen the participants’ competence within the overall areas stated. Providing training to facilitate such output is the major activities expected to be undertaken by contractor.

Scope of Services:

UNCDF is looking to engage a Training Service Provider to organize a training session over 5 days in total – spread in 2-3 intermittent sessions over a maximum of one-month period, with the objective to strengthen the organizations capability by increasing the understanding of the following expected concepts and outputs:

1. Capital structure
2. Business Risk Analysis 
3. Reliability of financial statement (Balance sheet, cashflow statement and P&L). 
4.  Assessing and Measuring Credit Risk 
5. Financial Risk Assessment
6.  Debt Capacity and Debt Service Analysis  
7.  Cash flow analysis 
8. Cash flow projections  
9. Sustainability analysis 
10. Bank capital Adequacy and key areas of vulnerability for Financial institutions/Banks in emerging markets in emerging markets 
11. Rating methodology 
12. Sovereign and country risk in emerging markets (Key macro drivers, FX, Interest etc.)
13. Legal system emerging markets: Bankruptcy process, recovery ratios etc. 
14. IFRS compared to local GAAP.
15. Perform Due diligence process regarding risk management process Financial institutions/Banks in emerging markets
16. Group Structure Risk 
17. Structure Framework for transactions regarding Loans, guarantees and other structural enhancements, including covenants and collateral. 
18. Types of and perfecting of Collateral generally and in emerging/frontier markets 
19. Causes and Signs of Financial Distress 
20. The effects of financial distress and potential options to mitigate risk
21. Action to protect creditors position. 
22. Corporate governance 
23. Financial restructuring and elements of a successful financial restructuring.
24. Financial impact of COVID 19 in Low income countries. 

In general, it is expected that each training event will have up to 15 participants. 

The training provider is required to take full responsibility for the content and quality of the training material as well as the quality standards and availability of trainers and speakers. Trainer(s)/speaker(s) must be fluent in spoken and written English. The training seminars and training materials must be made available in English. 

Training sessions will be virtual given the context of the Pandemic. The contractor is expected to provide a digital platform in which the training session will be performed. 

The corresponding target delivery from expected output is strengthened competency within the unit in relation to the expected output stated. 

Submission deadline: 03 January 2021 5pm EST New York time. 

Proposals must be submitted to email: Florence.knop@uncdf.org