• Clarify the terminology and background to modern project finance • Examine different project financing techniques and their application • Describe the benefits of project finance as a means of financing specific types of investments • Look at the project management issues for a large project financing, including syndication issues • Examine the roles of the different players in project finance and the value added by them
Who should attend This course is designed for financiers, sponsors and supplier companies to this important area of finance, presenting finance and export opportunities for projects large and small. Prior knowledge of investment appraisal techniques is assumed, as is spreadsheet knowledge.
Course contents • Origins of Project Finance • Basic techniques; 3 things to consider – concepts of recourse and non- recourse, with limited recourse as a half way house. Cost issues as risks shared/laid off • Concepts of equity and debt risks • Definition of a project – boundaries, objectives & project management • The business plan – key document, template for future documentation • Players – what they all do, project management of the teams • The business itself – technology, feasibility • Getting the right structure • Risk and risk management, risk checklists, costs, reality • Case study – based on a real example, this addresses risk, reward and creativity in project finance • Structuring and managing the financing – contracting, project management, equity and debt • Cashflow, assets and risk – project modelling, sensitivity and scenario planning • Legal structures and special purpose vehicles • Security – what is the asset; can it be given to lenders; what are the risks? • Setting up the financing package – the syndication process; just what can go wrong if the deal is apparently underwritten? • Managing the financing – the banks, their lawyers, advisors and how to manage them and their costs and demands.