COURSE INFORMATION

Scheduled Dates: 15 – 26 Jan '2024 | 15 – 26 Apr '2024 | 15 – 26 Jul '2024 | 14 – 25 Oct '2024

Duration: 2 Weeks

Customized dates and one-on-one sessions can be organized.

Preamble

This course is designed to help participants acquire in-depth knowledge of project financing requirements. The course examines various project financing options and lenders' mindsets.

With renewed interests in stimulating growth in critical sectors of the economy, project sponsors, credit committee members and corporate finance managers are under increasing pressure for sound financial decision making. They must thoroughly understand the financial considerations and risk elements involved in project economics and financing.

Participants will learn how to establish "project bankability", perform sound investment evaluations and select appropriate financing options.

Course Outline

1. Introduction: Key issues in project finance and risk management
• Activity in the project finance market
• Factors driving the demand for project finance

2. An overview of crucial issues in project finance
• Commercial motivations for project finance
• Project finance vs. the financing of projects
• The critical issue in all project financings
• Risk and return
• Factors influencing financing techniques and the syndication process

3. Qualitative risk evaluation in project financing
• Country and political risk
• Understanding the project finance process

4. Assessing qualitative risks in a variety of projects.
Identification and assessment of the key risks
• Feasibility studies and review of operating assumptions forselected projects, are the assumptions realistic?
• Review of the key aspects of a summarised feasibility study

5. Assessing the financial viability

6. Building and sensitising the operating cashflow
• Useful Excel sensitivity functions
• Assessing the financial sensitivity of the assigned projects to key risks
• Key factors influencing the project IRR

7. Sources of debt financing in projects

8. Financial yardsticks used by investors: uses and limitations
• Project investment appraisal techniques
• Corporate cost of capital as a basis for evaluating project returns
• How equity investors seek to mitigate risk in project finance
• The trade-off between leveraging equity returns and the need to provide credit support
• Assessing the impact of operating relationships between the project sponsors and the project company on equity returns
• Subordinated debt vs. equity and factors influencing the choice
• Determining an exit route, including IPOs
• Extracting cash from the project company

9. Commercial issues in project finance documentation
• Structure of loan documentation
• Key covenants and potential complications
• Concession agreements
• Structuring off-take agreements
• dealing with market risk
• Choice of construction contract
• Completion and cost overrun guarantees
• Shareholder lock-ins
• Banking security
• Intercreditor issues

10. Why projects face difficulty
• Lessons from experience
• Typical reasons for failure
• Options for equity investors in problem projects and practical problems

REGISTRATION

To register, kindly fill the Seminar Registration Form and send it to us through:

Email: This email address is being protected from spambots. You need JavaScript enabled to view it. , This email address is being protected from spambots. You need JavaScript enabled to view it.

TERMS AND CONDITIONS OF PAYMENT

1. Fees Payment - All fees are payable strictly in advance 2 working days before the course starting date.
2. Cancellation Fee - Cancellation of any participant 5 working days before the start day of a course will incur a 20% cancellation fee.
   We regret that no cancellations will be accepted within 2 working days of a course, but substitutions may be made.