November 13, 2010
Motivating Banks and Employees
E&C Treasurers Look for Better Credit and Employees
The Engineering and Construction Treasurers’ Peer Group met for its second meeting in September 2010 and discussed a wide variety of topics, including a capital markets update, with bank financing getting particular focus.
1) Export Credit Agencies and Project/Export Finance Update. Governments are using their ECAs to foster exports for their own domestic growth.
Key Takeaway: ECA financing should be a standard part of the arsenal for any exporting company.
2) Hedging Commodity Risk. Hedging and commodity risk are two separate things and the fears surrounding the former shouldn cloud the decisions of the latter
Key Takeaway: Ensuring physical supply (a la China) should be as much a concern as hedging price moves.
3) Letters of Credit, Bank Guarantees and Surety Bonds. Sometimes the lines can get a little blurred on which product is best for which scenario.
Key Takeaway: There are several variables that can determine which instrument is most appropriate, such as geography or government regulations or size of the obligation.
4) Staffing, Motivation, Talent and Training. Treasurers need to champion the most interesting parts of their job to attract star performers.
Key Takeaway: Allowing high-potentials to leave treasury, temporarily or for good, may be key to getting them in.
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