Project Finance

Day One

10.00 - 10.15 Welcome and Introduction

10.15 - 12.30 Introduction to Project Finance

• What is Project Finance?
• Why Use Project Finance?
• Historical Development
• The Impact of the Global Financial Crisis on Project Finance
• Features of Project Finance
• Types of Products Financed Using Project Finance

The Project Finance Markets and Participants

• Commercial Banks
• Bond Issues
• Mezzanine and Subordinated Debt
• Lease Finance
• Vendor Finance
• Public-Sector Finance
• Case Studies:
  • Example of International Project Finance Deals

12.30 - 13.30 Lunch

13.30 - 17.00 Project Development and Management

• Sponsors and Other Investors
• The Project Company
  • Structure
  • Shareholder agreement
  • Management and operations
• Advisers
• Public Procurement
  • Prequalification
  • Request for proposals
  • Bid negotiating to contract signing
• Working with Lenders
  • Commercial banks
  • Bond issues
• Project Contracts
  • The Project Agreement
  • Ancillary Agreements
• Case Study

Day Two

09.00 - 09.15 Brief recap

09.15 - 12.00 Financial Modelling and Evaluation

• Model Inputs
• Model Outputs
• Macroeconomic Assumptions
• Project Costs and Funding

Financial Structuring and Documentation

• Debt and Debt Service
• Drawdown of Debt and Equity
• Interest Rate and Fees
• Control of Cash Flow
• Security and Covenants
• Events of Default
• Wavers, Amendments, and Enforcement on Default
• Intercreditor Issues
• Case Study

12.00 - 13.00 Lunch

13.00 - 16.30 Project Risks and Risk Management

• Commercial Risks
  • Completion risk
  • Environmental and operating risks
  • Revenue risks
  • Input supply risk
• Macroeconomic/Financial Risks
  • Inflation
  • Interest and foreign exchange rate risk
• Political Risks
• Techniques for Mitigating Project Risks
  • Mitigating political risks
  • Export credits
  • Untied cover and financing
  • Private sector insurance
• Case Study

Evaluation and Termination of the Seminar