This Advanced Project Finance Workshop built as a rapid-paced discussion of critical aspects of project structures, at its conclusion participants, will be able to break analysis into its parts.
Participants will have gained techniques for assembling market information, making qualitative judgments, developing fundamental agreement and conducting a thorough quantitative financial analysis of projects. This module further identifies the many sources of finance and risk support, from bank markets to bond issuance, leasing and other foreign and local currency funding alternatives, highlighting their differences, requirements and investor concerns.
Master the advanced modeling techniques required to drive the analysis of complex projects and transactions across a broad range of industries. Successful execution of project finance transactions requires comprehensive modeling and debt analysis.
Advanced Project Finance Modelling enables you to extend your debt modeling capabilities to drive the transaction process. Bankers, sponsors, and investors all benefit from the powerful techniques for debt sizing, covenant monitoring and development of financial statements. With a continuous focus on robustness and flexibility and analytical techniques such as multi-asset modeling, this course is guaranteed to boost your project finance career and give you all the tools to reach financial close. You will learn the modeling principles and structured approach that are applicable across a range of industries.
Participants will be updated on the latest techniques and innovations in funding projects. They will learn to structure project transactions to minimize risks and improve prospects for future strong performance both in existing portfolios and new deals. The course helps participants understand the many sources of finance and risk support available to projects in GCC and globally.
Effective project risk management using interest rate, currency, and commodity derivatives is described.
Advanced Project Finance provides participants with the ability to understand project finance theory through creating and understanding project finance models. Advanced elements of the course focus on sculpting with debit fees, taxes, balloon repayments and DSRA’s as well as resolving circularity using functions rather than copy and paste macros.
You might be interested in other Project Management programs as a next step.
With a continuous focus on robustness and flexibility, this course is guaranteed to boost your project finance career and give you all the tools to reach financial close. You will learn the modeling principles and structured approach that can be applied across a range of industries.
The course helps participants understand the many sources of finance and risk support available to projects in GCC and globally. From banks to bond issuance, leasing and other foreign and local currency funding, it highlights differences among markets, disclosure requirements, distribution, investor considerations, etc. Effective project risk management using interest rate, currency, and commodity derivatives is described.
Participants who fully attend this course and complete the test on the last day will receive a Strategic Axis Professional Certificate (SAPC). SAPC certificates are regionally recognized and can be quite valuable when applying for more senior roles within the organization or outside.
Current Challenges /Approaches
Who are the Players? Identifying and Allocating Risks
What Can Go Wrong?
Examples from the Different Sectors
Risks in Development
Construction, and Operating Risks
Feedstock and Supply
Political and Regulatory Risks
Domestic and Foreign Banks
Development Banks, ECAs, and Other Official Creditors
Sources of Equity
Financial Modelling and Cash Flow Analysis
View of Lenders: DSCR and PV Coverage
Equity Considerations: IRR and NPV
Approaches to Evaluating the Cost of Capital
Project Returns vs. Equity Returns
Forecasting Techniques and Limitations
Probabilistic vs. Non-Probabilistic Model-Building
Legal Environment and Regulatory Conditions
Commercial Points and Legal Points in Various Project Structures:
– Incorporated and Unincorporated Joint Ventures
– Partnerships and Limited Partnerships
Critical Contractual Agreements and Structuring Considerations
Developing a Term Sheet
– Limiting Recourse
– Tax Gross-Up Issues
– Market Disruption Provisions
– Reps and Warranties
– Conditions Precedent
– Covenants Including MAC Clauses
– Hedging Requirements
Banks and the Current Club Loan Market
Syndicated Loan Financing
What Security do Banks Want?
Market Flex Clauses
Development Bank “A” and “B” Loans and Other Funding Sources
Guarantees and Insurance vs. Funding
Buyer and Supplier Credits
Bank Incentives Inherent in ECA Programs
Costs and Availability
Securitization of ECA Guarantees
Choosing a Special Purpose Vehicle
Outright and Partial Government Ownership
Long-Term Concessions and PPP structures like DBFO
Privatization of Seaports; Airport Financing
Private Placements and Eurobond Issuance for Projects
Comparing Bond Issuance to Bank Loans
Nature of Investors, Timing, and Flexibility
– Project Size and Relative Cost
– Security Requirements
– Negative Arbitrage Issues
– The Due Diligence Process / Road Shows
– Rating Agency Considerations
Leasing Applications in Projects
Market forces and the effect on electrical supply
Fragmentation of electricity generation
Merchant power plants (MPPs)
Rating agencies’ analytical model
Various types of renewable energy projects
Comparing renewable to traditional fossil fuel burning plants
Government incentives for renewable energy projects