Conventional and Islamic Project Finance

Conventional & Islamic Project Finance 1 8 - 2 1 O c to b e r 2 0 0 9

CONVENTIONAL & ISLAMIC PROJECT FINANCE BACKGROUND The aim of this 4-day workshop is to provide a through overview of the core principles and practice of Islamic Project Finance. The workshop is heavily case oriented, thus providing delegates with practical insight into various Islamic Project Financing Structures in the market.

By the end of the workshop, delegates should have a greater appreciation of the various structural considerations as well as a thorough understanding of the risks associated with project finance. Through a mixture of formal presentations, practice discussions, examples of various business sectors, exercises of multi-sourced financing, and active participation, delegates will be exposed to a wide range of factors involved in evaluating projects and analyzing project finance cash flows.

OBJECTIVES On completion of this course, participants will have gained a comprehensive understanding of: • The rationale of Project Financing • The key features of Project Financing • How to assess and evaluate Project Risk • The methodology of evaluating Project Cash Flows • The full range of Islamic Project Financing Structures and Products • The structural considerations pertaining to Islamic Project Financing Products • How to structure an Islamic Project Finance transaction and recognize the different needs of the parties involved

CONTENT HIGHLIGHTS Day One : • An overview of Project Finance • Key features of Project Financing Structures • Factors deriving demand for Project Finance • What determines the level of debt?

• Types of Contracts for multi-national sponsors • Parties involved in a typical Project Financing • Funding sources • Why do projects fail?

• Multi-sourced Financing Structures • Risk Analysis • Risk Structures and Allocations • Project Risk impact on Cash Flows • Credit Enhancement Techniques • Case Study

Day Two : • How Islamic Project Finance is challenging the conventional • Major Islamic Project Finance deals • Growth of Islamic Project Finance • Co-financing and multi-sourced financing • Challenges facing Islamic Project Finance • Types of Islamic Project Finance Structures and Products • Structural considerations of each Islamic Project Finance Product • Comparison between the various structures • The combination of Islamic Products used in Project Finance • Important structural considerations • Several case studies on various Islamic Project Finance Products

Day Three : Practical sessions

• Understanding Project Cash Flows and Ratios • Undersrtanding Financial Projections • Building a Cash Flow Waterfall in Project Finance • Calculation and Application of Cash Flow Available for Debt Service • Deriving Payment Obligation Cover Ratio • Deriving Financing Life Cover Ratio • Application of Debt Service Reserve Account • Application of Major Maintenance Reserve Account • Deriving Project Life Cover Ratio • Understanding the Application of Cash Sweep • Understanding Sensitivity Analysis

Day Four : • Developing skills in Islamic Project Finance evaluation and analysis through active participation in a case study evaluating the following: • Credit Requirements • Negative and Positive Covenants • Cash Waterfall and Financial Covenants • Security Issues and Intercreditor Agreements • Financing Plans and Structures • Contractual Structures and Key Project Documents • Evaluating Output of Financial Projections • Risk Analysis and Mitigants

WHO SHOULD ATTEND • Bankers and Financiers exposed to Project Finance • Treasurers and Finance Directors/Managers • Credit and Marketing Personnel • Risk Management Personnel • Corporate Banking Personnel

COURSE FACILATATOR Eman Bu-Rashid Eman Bu-Rashid holds an MBA from Warwick University, UK. Currently, she is the Managing Director of Keynotes Consultants. Following a career in education, she moved into banking. She started her banking career as an in-house trainer for Bank of Bahrain and Kuwait. She has been in the banking sector for over 20 years. During her tenure with Gulf International Bank (1994-2007), she was involved in evaluating major project finance transactions in the region.

In addition, she has been involved in structuring and negotiating financing transactions, which covered a wide range of sectors, including: • Aluminium Bahrain’s expansion - US$ 1.55 B • Arab Maritime Petroleum & Transport (Kuwait), acquisition of two Aframax vessels and one Suezmax vessel - US$ 110 M • Qatar Fuel Additives Company, refinancing its project finance debt - US$ 200 M • Qatar Fertilizer Company (QAFCO IV) - part financing the 4th expansion - US$1.15 B • Qatar Navigation Company, financing container vessels - US$ 90 M • Qatar Vinyl Company, refinancing existing project finance debt - US$ 400 M • Salalah Port Services (Oman), refinancing existing project finance debt and financing superstructure of two berths - US$ 110 M • Qatar Airways, financing of equipment and spare engine - US$ 75 M • Dhofar Power Company (Oman), financing power plant - US$ 400 M • Oman LNG Company, refinancing of existing project finance debt - US 1.35 B • Qatar Steel Company, part financing expansion program - US$ 550 M • Barr Al Jassa Resort (Oman), financing resort development - US$ 146 M • Oman Refinery Company, financing expansion program - US$ 140 M • Oman Gas Company, refinancing existing project finance debt - US 230 M

Course Details:

Duration : 4 days (18 -21 October 2009 ) Timing : 8:30 AM - 2:30 PM Venue : BIBF Fees : • BD 400 for Levy payers • BD 500 for non Levy payers

For Registration, please contact : The Registrar

Tel: +973 17 815555 / 17 815581/ 17 815579 Fax: +973 17729928/17916420 Email: infodesk@bibf.com Website: www.bibf.com

CONVENTIONAL & ISLAMIC PROJECT FINANCE R egistration F orm Duration: 4 DAYS ( 18 - 21 OCTOBER 2009 ) Venue: Bibf, Kingdom of Bahrain Fees: BD 400 for Levy payers, BD 500 for non Levy payers

Organization Sponsored

Self Sponsored

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The Registrar The Bahrain Institute of Banking & Finance – BIBF P.O. Box 20525, Manama, Kingdom of Bahrain.

Tel: +973 17 815555 / 17 815581/ 17 815579 Fax: +973 17729928/17916420 E-mail: infodesk@bibf.com Website: www.bibf.com

IMPORTANT NOTICE: All courses are subject to demand. The Institute reserves the right to cancel or postpone courses at short notice at no loss or liability where, in its absolute discretion, it deems this necessary.

CANCELLATION AND REFUND OF FEES: In the case of cancellations by delegates, fees will only be refunded if a written notice of cancellation is received by the Institute not less than two weeks prior to the commencement of the course/program in question. Course/program fees already paid or invoiced may not be refunded and invoices will be due and payable. Substitute delegates are permitted.

VISA PROCEDURES: GCC nationals and residents do not require a visa for the Kingdom of Bahrain. All others should have an entry visa, which BIBF can arrange. Should you wish that the Institute obtains an entry visa for you, please mail or Fax (+973 17 916420) our Information Desk, a copy of your passport at least 15 days prior to the course/program starting date. Visa costs will be charged to the participant.

ACCOMMODATION & TRANSPORTATION: H o t e l a c c o m m o d a t i o n a n d t ra n s p o r t a t i o n c o s t s a r e t h e p a r t i c i p a n t ' s o w n r e s p o n s i b i l i t y.

Should you wish that the Institute arrange accommodation for you, please Fax (+973 17 916420) our Information Desk or Email infodesk@bibf.com for assistance.

Background of the Center for Islamic Finance

“Best Islamic Finance Training Institution 2008”

The Center for Islamic Finance was established in 1997. Since then, it has grown to offer a full range of professional courses across both MENA and Asia, including a Professional Diploma for banking executives.

These courses are either offered internally by BIBF professionals or externally by industry practitioners. The Center is also involved in Shari’a based product development consulting and high level policy advice for Islamic Financial Institutions and supporting organizations. In 2008, the Center won the “Best Islamic Finance Training Institution Award 2008” from the readers of the globally acclaimed Islamic Business and Finance Magazine, a sister publication of the Banker Middle East.

Background of BIBF The Bahrain Institute of Banking and Finance (BIBF) is the leading professional training institute in Bahrain and the Gulf region. It was founded in 1981 to provide essential training for the banking community in Bahrain.

Since then, it has evolved into an internationally recognized training and development organization where over 100,000 students have attended courses since its inception. In 2006, more than 13,000 participants attended BIBF programs resulting in approximately 400,000 participant hours. Thirty percent of all these participants were from outside Bahrain. BIBF now offers courses in most major business disciplines including Insurance, Management, Professional Studies and Banking. Most of these courses are accredited by top business school partners of BIBF in Europe and the United States including Darden Graduate School of Business Administration (University of Virginia), DePaul University, Bentley College, Cambridge University and Wales University. In addition, BIBF offers preparatory courses in most major professional designations including but not limited to CFA, CPA, CMA, CIA, ACII, FRM.

Bahrain Institute of Banking and Finance PO Box 20525, Manama, Kingdom of Bahrain Tel : (+973) 17 815555 Fax: (+973) 17729928 Email: infodesk@bibf.com www.bibf.com