SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate an understanding of the Principles of Project and Structured Finance 
SAQA US ID UNIT STANDARD TITLE
13400  Demonstrate an understanding of the Principles of Project and Structured Finance 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
Persons credited with this Unit Standard are able to demonstrate an understanding of the core concepts of Project and Structured Finance.

The qualifying learner is capable of:
  • Explaining the need for project finance
  • Illustrating the role of export/import credit finance in project finance
  • Demonstrating a basic understanding of Structured Based Finance
  • Demonstrating an understanding of Asset Based Finance
  • Demonstrating an understanding of Property based Finance
  • Demonstrating an understanding of Securitisation 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    The learner must be able to work within structured finance environment and to have some understanding of cashflow modelling , building macros and a basic understanding of accounting and tax. 

    UNIT STANDARD RANGE 
    The context of this unit standard is a Structured Finance environment. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the need for project finance 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The difference between project and structured finance is distinguished. 
    ASSESSMENT CRITERION RANGE 
    Recourse vs Non-Recourse Finance, Project Specific vs General.
     

    ASSESSMENT CRITERION 2 
    2. Typical users of project finance are distinguished. 

    ASSESSMENT CRITERION 3 
    3. Sources and interrelationship between equity and debt are defined. 

    ASSESSMENT CRITERION 4 
    4. The phases and risks attached to project finance projects are illustrated. 

    SPECIFIC OUTCOME 2 
    Illustrate the role of export/import credit finance in project finance 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. An understanding of why the application of this market exists and who the major players are demonstrated. 

    ASSESSMENT CRITERION 2 
    2. Roles, risks and benefits for each party are explained. 

    ASSESSMENT CRITERION 3 
    3. Commercial requirements to qualify for export finance are illustrated. 

    ASSESSMENT CRITERION 4 
    4. An understanding of the Credit Guarantee Insurance Corporation (CGIC) is illustrated. 

    SPECIFIC OUTCOME 3 
    Demonstrate a basic understanding of structured based finance 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. An understanding of credit risk is demonstrated. 

    ASSESSMENT CRITERION 2 
    2. A distinction between conventional and structured finance is illustrated. 

    ASSESSMENT CRITERION 3 
    3. The areas where structured finance can add value are discussed. 
    ASSESSMENT CRITERION RANGE 
    Income tax in different jurisdictions, Accounting rules, Bank Act.
     

    SPECIFIC OUTCOME 4 
    Demonstrate an understanding of asset based finance 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Leasing vs purchase of an asset(s) is distinguished. 

    ASSESSMENT CRITERION 2 
    2. Accounting for operating leases vs accounting for finance leases is illustrated. 

    ASSESSMENT CRITERION 3 
    3. The concept of cross-border leasing is described. 

    SPECIFIC OUTCOME 5 
    Demonstrate an understanding of property based finance 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The need for property finance is explained. 

    ASSESSMENT CRITERION 2 
    2. Characteristics of property finance vs other asset classes are demonstrated. 

    ASSESSMENT CRITERION 3 
    3. The implication of residual risk is illustrated. 

    SPECIFIC OUTCOME 6 
    Demonstrate an understanding of securitisation 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. A history and comparison of South Africa to the rest of the world is explained. 

    ASSESSMENT CRITERION 2 
    2. The regulatory benefits of Securitisation are illustrated. 

    ASSESSMENT CRITERION 3 
    3. Reasons for choosing Securitisation as opposed to other methods of finance are discussed. 

    ASSESSMENT CRITERION 4 
    4. The role of credit rating agencies in securitisation is explained. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standards shall be from the relevant education and Training Quality Assurer through formative and summative assessment by a registered Assessor. Assessment should be contextual and be conducted in the workplace as far as possible.

    The relevant NSB and SGB should be notified of any feedback related to this qualification.
  • Assessors must be registered as an Assessor with the relevant ETQA
  • Moderators must be registered as assessors with the relevant ETQA
  • Training providers must be accredited by the relevant ETQA
  • Moderation should include both internal and external moderation where applicable
  • The relevant ETQA will co-ordinate all moderation activities in accordance with their policies and procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    Learners can:

    1. Apply information of Structured and Asset Based Finance.
    2. Apply understanding of differences between conventional and Structured Finance. 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems relating to the completeness, correctness and accuracy of the information received. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using basic mathematical and/or language skills in the modes of oral and/or written persuasion when communicating with relevant parties regarding the application. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is able to use science and technology effectively and critically in applying the use of the company system to process applications. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Terminology:

    The learner should be able to define and contextualise the following terms:

    APU, Net present value, Internal Rate of Return, Credit Margin, Cost of Capital, Cost of Finance, Spreads, Jibar, Fixed vs variable rate, Term, Duration, Residuals, Profile Escalation.

    Values:

    The use of tasks and materials in the learning event plan should not discriminate against learners on any grounds prescribed in the Bill of Rights and should promote the orientations outlined in the critical cross-field outcomes. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  61589   National Certificate: Banking  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  79886   National Certificate: Business Advising  Level 5  NQF Level 05  Reregistered  2023-06-30  SERVICES 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Cornerstone Performance Solutions (Pty) Ltd 
    2. OnTrack Learning Solutions CC 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.