Fundamentals of Project Finance
INTRODUCTION
Project finance is the funding (financing) of long-term infrastructure, industrial projects, and public services using a nonrecourse or limited recourse financial structure.
It is the financial analysis of the complete life-cycle of a project. Typically, a cost-benefit analysis is used to determine if the economic benefits of a project are larger than the economic costs.
This course designed and delivered by the International Faculty of Finance examines the project financing process in detail, focusing on financing term sheets and documentation. Delegates then progress to a study of the project financing challenges of today, using case studies and group discussions to apply the skills they have acquired.
OBJECTIVES
This Fundamentals of Project Finance Course will enable you to:
Analyse why and when sponsors use project financing techniques
Widen your understanding of the project finance techniques and the jargon used
Examine of the key sources of limited-recourse debt
Appreciate of the lender s approach to risk
Understand how key risk factors drive structure and loan pricing Learn how project models are built and used to balance equity against debt
Appreciate how project models are used to optimise debt amounts, maturity and re-payment
WHO SHOULD ATTEND ?
The Fundamentals of Project Finance Courses will be valuable to professionals in the following areas: Bankers/Investment Bankers
Project Finance Modellers
Financial Advisors
Sponsors/Project Joint Ventures
Project Developers
Government/PPP Agencies
Public Sector Managers
Export Credit Agencies
Multilateral Agencies
Accountants/Taxation Advisers
Financial Analysts
Share market Analysts/Brokers
M&A/Buyout Specialists
Privatization Executives
Company Treasurers/Directors
Credit Committee Staff
Rating Agencies
Project Managers/Engineers
Project Consultants
Investment/Portfolio Managers
Insurance Advisers/Brokers
COURSE OUTLINE
Day 1
What is Project Finance?
Definition Project Finance as opposed to financing of a project
Limited-recourse and non-recourse finance
Origins of project finance
Who uses project finance and why?
What is the downside?
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Day 2
The Project Finance Process
The Players and their interests
Ownership structures
Key project contracts
Role of advisers:
The financial feasibility study/debt structuring
The information memorandum
Debt underwriting/syndication
Financial close
Post-close monitoring
Day 3
Sponsors and Lenders/ The Lender s Risk Analysis
Different risk/reward objectives of sponsors and lenders
Balancing equity and debt
Different types of debt senior/ subordinated/mezzanine
Structural & pricing drivers
Key ratios annual debt service, loan life and project life covers
Balancing equity and debt
Assessing the Risks
Macro risks
Completion risk
Operational risk
Day 4
Other Sources of Debt Finance / Risk Mitigation
The bond markets
Credit enhancement through guarantees
Islamic finance
Private political risk insurance market
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Export credit agencies
Multilateral agencies/development banks
Sponsor co-financing
Day 5
Project Financing Documentation
The term-sheet purpose, legal status, binding/non-binding aspects
Term-sheet/documentation provisions:
Term-sheet interactive exercise
Legal opinions
LMA standard terms
Security and credit rights
Payment waterfall
Collateral and assignment of contract rights
Rights of the controlling classes, inter-creditor issues
Reserve accounts, cash sweeps, profit distribution controls
Refinancing risk
Project types
Conclusion
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High-Quality material has been prepared by the LPC team for distribution to delegates. In addition, a special note pad to facilitate note-taking will be provided.
CERTIFICATES
Accredited Certificate of completion will be issued to those who attend & successfully complete the programme.
SCHEDULE
Our Course timings commence at 09:00 and conclude at 13:00.
REGISTRATION & PAYMENT
Please complete the registration form on the course page & return it to us indicating your preferred mode of payment. For Further Information, please get in touch with us.
CANCELLATION AND REFUND POLICY
Delegates have 14 days from the date of booking to cancel and receive a full refund or transfer to another date free of charge. If less than 14 days notice is given then we will be unable to refund or cancel the booking unless on medical grounds. For more details about the Cancellation and Refund policy, please visit www.lpcentre.com/terms-and-conditions/
TRAVEL AND TRANSPORT
We are committed to picking up and dropping off the participants from the airport to the hotel and back.
CONTACT
LONDON
Oxford Street Offices: London - Oxford Street 25 N Row, London W1K 6DJ
+44 (0) 20 36 916 970
West London Office: 47 49 Park Royal Road London NW10 7LQ
+44 (0) 20 80 900 464 info@lpcentre.com
DUBAI
Business Bay - Marasi Drive
Churchill Tower commercial 1, Office 107 +971 4 421 4616
KUALA LUMPUR
No. 03-06-05, UOA Business Park, Jalan Pengaturcara U1/51A, Section U1, Kawasan Perindustrian Temasaya, 40150 Shah Alam, Selangor +60 19-305 5694
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