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International Project Finance

Euromoney Learning
Course summary
Professional Training
5 days
4,895 GBP excl. VAT
New York
Course Dates
New York
4,895 GBP
05/12/2022

Course description

International Project Finance

This practical five-day International Project Finance programme will show you how to analyse project finance opportunities and properly structure transactions in order to minimize risks and improve the prospects for future strong performance, both in existing portfolios and new transactions. You will also learn how excel models are used to assess project debt capacity, return on investment, and other metrics common to attractive deals.

Besides discussing many recent examples of financing structures attractive to Banks, Institutional Investors, and Equity providers, careful attention is paid to credit enhancers such as Export Credit Agencies, Development Banks, Private insurers, mon-lines and others.

By the end of the programme, you will have developed a framework for recognizing and analysing qualitative and quantitative project risks when financing green field projects as well as facility upgrades.

Day 5: Cashflow Modelling Workshop

The program's fifth day session is a stand-alone cash flow modelling workshop. Using excel software, participants create a model for an LNG Plant suitable for examining project debt capacity as well as return on investment.

Suitability - Who should attend?

Who should attend?The 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

Training Course Content

Day 1

Themes: Structuring Projects and Creating a Security Package; Discovering the Most Efficient Sources of Finance;Cashflow modelling.Project Finance Today

  • Current challenges in project finance
  • Who are the players?
  • Identifying and allocating risks
  • What can go wrong?
  • PPP and project finance: financing infrastructure
  • BOO, BOT, BOOT, DBFO and other approaches
  • Private investment in public infrastructure

Projects and Risk Identification

  • Risks in development
  • Construction and operating risks
  • Feedstock and supply
  • Market risks
  • Environmental risks
  • Financial risks
  • Political and regulatory risks

Sources of Finance: Financing Checklist

  • Domestic and foreign banks
  • Bond markets
  • Development banks, ECAs and other official creditors
  • Leasing
  • Islamic finance
  • Sources of equity

Cashflow Modelling Approaches

  • Financial modelling and cash flow analysis
  • The 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

Day 2

Themes: Legal Issues; Bank Finance; Export Credit Agencies; PPP for Transportation and other Infrastructure Projects

Legal Issues in Project Finance

  • Legal environment and regulatory conditions
  • Commercial points and legal points in various projects
  • SPV Structures
  • Key contractual agreements
  • Developing a term sheet
    • Limiting recourse
    • tax gross up issues
    • Market interruption
    • Reps and warranties
    • Conditions precedent
    • Covenants including MAC clauses
    • Hedging requirements

Export Finance Techniques (ECAs)

  • 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

Liberalizing Power Markets

  • Market forces and the effect on electrical supply
  • Fragmentation of electricity generation
  • Generating, Transmission, Distribution
  • Merchant Power Plants (MPPs)
  • Rating Agencies' analytical model

Renewable Energy Projects

  • Growth of the market and various types of renewable energy projects
  • Comparing renewable to traditional fossil fuel burning plants
  • Project economics
  • What is driving the investment?
  • Government incentives in various countries

Day 3

Themes: Bank Markets; Development Banks; PPP for Transportation and other Infrastructure Projects

Sources of Finance: Banks and Other Senior Secured Creditors

  • Club Loans and Syndicated Loan Financing
  • What security do banks want?
  • Market flex clauses and “Mini-perms”
  • Inter-creditor issues

Roles for Development Banks and Agencies

  • World Bank Group
  • Regional Multilateral development banks (Asian Infrastructure Investment Bank, Asia Development Bank, Africa Development Bank, EBRD, EIB, Inter-American Development Bank, Islamic Development Bank, Others)
  • Bilateral agencies (FMO, DEG, OPIC, Proparco, etc.)

Islamic Structures

  • Murabaha, Istisna, Ijara and Sukuk in Projects

PPP: Transportation Projects and Other Infrastructure

  • Public Private Partnerships (PPP) Principles
  • Roles for the Public and Private Sector
  • Different Structures and Degrees of Private Participation
  • Outright and partial government ownership
  • Long-term concessions and DBFO
  • Roads, Railroads, Airports, Ports and Other

Day 4

Themes: Capital Markets; Risk Management with Derivatives, PPP for Water and Other Infrastructure

Using Capital Markets

  • 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
  • Private risk insurers and Mono-lines

Price Volatility and Risk Management with Derivatives in Projects

  • Financial price movements today: volatility and risk
  • Commodity-linked derivatives and securities
  • Using interest rate and currency swaps to manage risk in projects
  • Options: caps, floors and collars

Water Infrastructure

  • Special features of limited recourse projects in water and sanitation
  • Array of structures: Service Agreements Leasing, BOT, Privatization
  • Who are the players? Investors and lenders?
  • Desalination and electricity projects
  • Case examples and PPP transactions

Social Infrastructure

  • Financing Hospitals, Schools, Prisons, Others
  • Concessions and Contract Terms
  • Risk Evaluation and Allocation
  • Monitoring Requirements

Day 5

Themes: Oil, Gas, LNG and Cashflow Modeling

Participants will spend a day building a model for an LNG facility. They will assess a wide range of scenarios in order to test a limited-recourse financing package for debt capacity and suitability for investment. With discussion of common approaches to modeling with Excel, “dos’ and ‘don’ts” as well as the practical use models for negotiations.

Modeling Workshop Overview: Objectives and Approaches

  • Constructing a Model / Common Myths
  • Variations by Project Type

Structuring the Model and Organizing the Data to Create a Cashflow Statement

  • Developing an Assumptions Page
  • Construction Costs and Timing
  • Operating Cost, Plant Capacity Usage, Fixed and Variable Costs
  • Reinvestment, Plant Expansion, Productivity Shifts

Developing the Profit and Loss and Balance Sheet

  • Factoring in Reserves
  • Considering Currencies
  • Tax Calculations

Financing Section

  • Equity First or Pro Rata
  • Manually Designed Equity Subscription
  • Draw-down of Debt Linked to Specific Contracts or Expenditures or in a Hierarchy

Ratios and Sensitivity Analysis: Objectives and Limitations

  • Measuring Debt Capacity and Investor Return
  • Using Modeling Output for Initial Project Vetting
  • Supporting on-going Negotiations

Why choose Euromoney Learning

4.75/5 rating on course check for service

25,000 professionals trained across public courses

99 countries where training is delivered

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About provider

Euromoney Learning

At Euromoney Learning, we understand that learning doesn’t start and end when you leave the classroom. We know that the financial markets never stand still, and that technology has both simplified and added complexity at a break-neck pace. That’s why...


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EC4Y 8AX, London

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https://www.euromoney.com/learning/social-learning


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