Certificate

Khazanah Nasional Berhad - Understanding Capital Markets Program

Issued to:	Adam Ashraf Abd Razak
Issued date:	July 13, 2021
Issued by:	AMT Training

Capital markets and corporate funding

In this session participants will explore the way in which capital markets connect the world’s issuers, to the world’s investors, with the assistance of the financial industry. The major global investors and issuers are covered in some detail, along with the main features of the key funding instruments; debt and equity. Participants will then examine some of the ways in which the corporate makes decisions on the equity and debt mix in their business.

Equity capital markets

In this session participants will cover the main products of the equity capital markets. Using a case company, the participants will tour through the equity capital markets, embracing IPOs, secondary offerings, and different share classes.  Finally listing rules and some of the subtleties of the pricing of equities are examined.

Debt capital markets for issuers

In this session participants will cover the main debt products available to corporates. Using a case company, the debt capacity is calculated before different funding options. Both long and short term, and public and private financing options are explored.  Finally the bond issuance process and key documentation are discussed.

Bond cash flows and valuation

During this session we discuss the detail of calculation of coupons and accrued interest, and we build a bond pricing model in Excel, exploring how bond valuation is performed between coupon dates. While building the model, participants will develop their understanding of cash flow sizes and dates, accrued interest, discount factors and yield.

DCF issues

This session focuses on the alternative terminal value calculation approaches. Participants model a two-stage steady state terminal value and learn how returns fade to WACC over time.

M&A accounting

During this session participants learn the accounting rules to incorporate equity investments in the consolidated accounts and work on several examples by preparing proforma financials for a variety of cases. Complexities such as non-controlling interests and equity method investments (associates / affiliates), and their impact on earnings and cash flows are also covered.