2024/25 Taught Postgraduate Module Catalogue

LAW5565M International Banking Law: Capital Markets and Loans

15 creditsClass Size: 90

Module manager: Professor Gerard McCormack
Email: G.McCormack@leeds.ac.uk

Taught: Semester 2 (Jan to Jun) View Timetable

Year running 2024/25

This module is not approved as an Elective

Module summary

The module focuses on the law and regulation of syndicated loans to business and raising money on the debt capital markets by issuing bonds. Both these methods of corporate finance are commercially significant and of global relevance. The law, regulation and practice is examined from a practical perspective with an emphasis on understanding the language, environment and commercial significance of this area of investment banking. Students are encouraged to read the financial press and to discover the current significance of these important areas of the law.

Objectives

The objective of the module is to develop a critical understanding of the role played by banks and debt capital markets in funding investment by companies and sovereign entities and of the legal and regulatory framework in the UK that governs such funding. The emphasis will be on the current financing landscape rather than the historical position. Funding through share capital (or equity) will not be addressed as the relevant law is referred to in other modules such as corporate law.

The module focuses on the law and regulation of syndicated loans to business and sovereign entities and raising money on the debt capital markets by issuing bonds. Both these methods of corporate finance are commercially significant and of global relevance. The law, regulation and practice is examined from a practical perspective with an emphasis on understanding the language, environment and commercial significance of this area of investment banking. Students are encouraged to read the financial press and to discover the current significance of these important areas of the law including the effect of Brexit. Many banks and businesses now refer to themselves as international and this description can be confusing. Operations (e.g. the provision of retail outlets or production facilities) can be carried out by a company or group of companies in more than one country and funding can, in fact, easily be provided across national borders. The legal and regulatory issues in relation to any fund raising need to be examined with one jurisdiction in mind so that the legal and regulatory effects of that particular financial transaction can be assessed in that particular jurisdiction.

In this module we will be looking at English law, commercial practice in the United Kingdom and financial regulation in the United Kingdom which until recently was a member state of the European Union. We will also be investigating the extent to which parties can choose to apply English law to their fund-raising and ensure that the English and no others, can adjudicate on disputes that arise in relation to such fund raising. Similar legal and commercial issues arise in all jurisdictions throughout the world and an understanding of the position in English law will assist your legal analysis of the position in other jurisdictions.

Learning outcomes
On successful completion of the module students will have demonstrated the following learning outcomes relevant to the subject:
- Critical analysis of the function of capital markets and debt capital markets and the role that banks play in these in relation to investment
- Knowledge of the law relating to syndicated bank loans and in particular the enforcement of covenants and the law relating to guarantees
- Knowledge of the law relating to bonds as negotiable instruments and to bond trustees and fiscal agents and their relationship to banks; an appreciation of conflict of laws and its relevance to finance documentation
- Critical analysis of debt capital markets and their commercial function in relation to banks and banking
- An understanding of the role played by law in regulating and controlling debt capital markets in the European Union
- Knowledge of securities law in the European Union and in the UK in so far as it relates to prospectuses
- Knowledge of the law on negligent misstatement in relation to prospectuses connected with finance transactions

Skills learning outcomes
On successful completion of the module students will have demonstrated the following skills learning outcomes:
1. Critical thinking, demonstrating openness to alternative ideas and have the ability to interrogate sources
2. Develop academic skills to enable you to source, understand and apply your discipline
3. Be able to evaluate and analyse a range of information to put forward coherent and evidence based arguments
4. Develop advanced communication skills, essential for effective interaction and the dissemination of complex legal concepts.

Syllabus

Details of the syllabus will be provided on the Minerva organisation (or equivalent) for the module

Teaching methods

Delivery type	Number	Length hours	Student hours
Lecture	8	1.00	8.00
Seminar	5	1.50	7.50
Private study hours			134.50
Total Contact hours			15.50
Total hours (100hr per 10 credits)			150.00

Opportunities for Formative Feedback

A formal formative assessment opportunity will be provided, which is specifically pedagogically aligned to the summative assessment task. As part of this, each student will receive individual feedback designed to support the development of knowledge and skills that will be later assessed in the summative assessment.

Methods of assessment

Coursework

Assessment type	Notes	% of formal assessment
Assignment	Coursework	100.00
Total percentage (Assessment Coursework)		100.00

Normally resits will be assessed by the same methodology as the first attempt, unless otherwise stated

Reading list

There is no reading list for this module

Last updated: 04/04/2024

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