Case Study Instructions and Guidelines

Appendix A: Samples of Cases

These are synopses of case studies which are used to help the students achieve the Course
Objectives:

Huaneng Power International, Inc.: Raising Capital in Global Markets
Stephen R. Foerster, Andrew Karolyi, Jerry White
It is early October 1994, and Huaneng Power International (HPI), an independent power
producer in the People’s Republic of China (PRC), is in the process of executing a global equity
issue to raise funds for the construction of new power plants. The company is planning to list the
new shares through an American Depositary Receipt program on the New York Stock
Exchange. The company has recently reduced the price of the issue due to poor market
conditions and investor resistance to the price range stated in the preliminary prospectus. The
student must decide, as HPI management, whether the new offer price and choice of listing
exchange is reasonable in light of recent market events and the political, economic, social, and
technological environment in the PRC.

Innocents Abroad: Currencies and International Stock Returns
Mihir A. Desai, Kathleen Luchs, Mark F. Veblen
What do international stocks contribute to the portfolio of a U.S. investor? How do currencies
interact with stock price movements in determining the benefits of international diversification?
This case helps students compare the risks and returns of foreign stock markets with each other
and with the U.S. market and to examine the risks and returns of international diversification.
Students must calculate returns, adjust for currencies, derive correlations, and map efficient
frontiers based on raw data.

Launch of Durra: Women in Islamic Banking
Alexandra Roth, David T.A. Wesley
The case focuses on the vice-president and regional head of corporate banking for Noor Islamic
Bank in Dubai as she arrives in the United States to promote the first global network for women
in Islamic banking and finance, known as Durra. The case introduces students to the concepts
behind Islamic banking and the reasons why certain types of risky financial products are not
permitted under Islamic law. As a result, Islamic banks have been growing at a rate of 15 per
cent per year, and have assets approaching $1 trillion, despite the recent banking crisis. Islamic
banks also have a hard time filling the 30,000 new jobs created each year because of the
specialized training required. One of the purposes of Durra is to help more women fill critical
positions in Islamic banking and to help them manage their careers in order to assume
leadership positions. The case also raises questions about how best to build a non-profit
organization. Issues include how to attract new members and financial backers and how to build
a useful and robust website that fulfills the needs of the organization.

Citibank N.A in China
This case deals with the decision of how to structure an overseas operation and how this
decision is affected by a number of variables which among others include the bank internal
resources and experience, tax considerations, and most importantly the host country’s banking
laws. Students are asked to develop a strategy to retain the bank’s “first mover” in China and to
establish a dominant position in this market.

Royal Bank of Canada in Thailand

The purpose of this case is to demonstrate the challenge of doing business in emerging
markets. The case emphasizes the long term commitment that is required, despite the instability
inherent in heady markets. Among other requirements, students need to prepare a detailed
recommendation to senior management supporting a decision to stay in the country or to pull
out. This decision needs to take into consideration the sensitivities and reaction of the
authorities in Thailand to a pull out.

Conflict on Trading Floor
Ethics is the major theme of this case. Students are required to understand all the details of the
financing of a cruise ship, that involves the use of loan, foreign exchange and derivatives
products in order to In order to pass judgment in a highly profitable bank transaction that could
be construed as fraud.

Banc Zero: New Product Development
This case deals with the difficulties involved in developing derivate products for subsidiaries of
multinationals, located in developing countries, using bank’s pricing and valuation models
originally created for developed countries. Students are asked to approved or disapprove a new
currency swap product and provide suggestions to improve the bank’s processing and approval
of new products guided to local markets.

Citibank Mexico: The Salinas Accounts
This case is based on a client of the Citibank Private Bank that was accused of murder, illegal
enrichment and laundering money for the Mexican drug cartel. Illustrates the difficulties of
obtaining information at the international level and the importance of developing and following a
comprehensive anti money laundering and compliance process. Students break into groups to
play the role of bank auditors, Swiss authorities and US authorities. To encourage
competitiveness, a best team is selected.

Chase’s Strategy for Syndicating the Hong Kong Disneyland Project Loan
This case provide students with the opportunity to learn the process of international syndicate
lending as applied to project finance, using the Walt Disney Company and Hong Kong
Government’s agreement to develop Hong Kong Disneyland, HK $ 28 billion theme park.
Students with learn the complexities of a large financial transaction denominated in various
currencies involving financial institutions located in various countries, and government and
corporate’ s political pressure to select participating banks. Among other requirements, students
are required to prepare a scale back of commitments for participating banks (foreign and local)
that takes into consideration local sensitivities. To encourage competitiveness a best team is
selected