Overview

Project finance is used on a global basis to finance over $300 billion of capital-intensive projects annually in industries such as power, transportation, energy, chemicals, and mining. This increasingly critical, financial technique relies on nonrecourse, risk-mitigated cash flows of a specific project, not the balance sheet or corporate guarantee of a sponsor, to support the funding, using a broad-based set of inter-disciplinary skills.

This short course in Project Finance aims to provide candidates with an overall view of Project Finance and the main mechanisms of how to provide for financial structuring of the project. The program director is an expert in Public Private Partnerships and concession projects, working with major financial consultancy firms, with over 20 years of experience in developing projects under project finance methodology.

Why Should an Individual Attend?

• Direct, specific, and practical tools to apply to project finance
• The structured approach of this course provides you with a clear and logical methodology to guide you through the project finance.
• Learn from the first-hand experiences of an entrepreneur who has successfully built over 15 businesses from the ground up.

Outcomes

Delegates will be able to:

• Obtain an overview of the concepts and approach used in structuring and arranging project finance transactions for major infrastructure schemes
• Gain an understanding of risk analysis and risk management technique
• Learn about a project appraisal methodology
• Understand the language and approach of financiers
• Insight into the drivers, approaches and concerns of the key players involved in creating and financing major projects

Program Outline

Pillar 1: Introduction – Project Finance Overview and Fundamentals

• Origins of project financing
• Definition of project finance
• Why choose project finance?
• Structuring the project vehicle
• Key sponsor issues

Pillar 2: Parties To A Project Financing and Project Financing Documentation

• Parties and their roles
• Project company/borrower
• Sponsors/shareholders
• Role of documentation
• Shareholder/sponsor documentation
• Loan and security documentation
• Project documents

Pillar 3: Project Structures

• Approach to financing
• Bonds
• Leasing
• “Build Operate Transfer” “BOT” model

Pillar 4: Risks and mitigants

• Understanding the risk allocation
• Country and political risks
• Industry risks
• Project risks
• Environment risks
• Construction risks
• Offtake - sales and supply risks
• Contractor risks
• Operator risks
• Funding risks
• Foreign exchange - currency and Interest rate risks

Pillar 5: Security and Insurance Issues

• Approach of lenders
• Reasons for taking security
• Role of project insurances
• Who insures?
• Scope of cover
• Problem areas

Pillar 6: The Project Loan Agreement

• Warranties, covenants and events of default
• Project bank accounts
• Appointment of experts
• Information and access
• Cover ratios
• Governing law and jurisdiction
• Completion issues

Who Should Attend?

• Engineers
• Bankers
• Accountants
• Lawyers
• Middle/Senior Managers in utility companies,
  
  • Commercial banks
  • Consultancy
  • Law firms