Project Finance

Agenda Program
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Prague, NH Hotel Prague
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Introduction to Project Finance
The Project Finance Markets
Project Development and Management
Financial Modelling and Evaluation
Financial Structuring and Documentation
Project Risks and Risk Management
Practical Case Studies
The purpose of this seminar is to give you a good and practical understanding of "project finance" as a financing tool.

We start with a general introduction to project finance. We explain the recent developments of project finance, its key characteristics and how these differ from other types of finance, and why project finance is used. We give an overview of project finance markets and we explain the roles of the main participants and financing sources: commercial banks, bond investors, mezzanine and vendor finance etc.

We then look at how sponsors and the project company develop projects and the competitive bidding procedures for project development. We also explain procedures for raising financing for private sector lenders, and we review the main project agreement and other important project contracts such as the Offtake Contract and Concession Agreement.

Further, we explain how the financing structure for a project is created and maintained. We describe the inputs used for a financial model of a project and we explain how the model's results are used by investors and lenders. We also explain how the process of review and risk analysis concludes in a negotiation of the project's finance structure and terms.

Finally, we present and discuss the various types of risks involved in project finance: commercial risks, financial risks, and political risks. We also explain techniques for mitigating these risks, including government guarantees and private sector insurance.

The techniques and principles taught at this seminar will be illustrated using practical case studies.

Program of the seminar: Project Finance

The seminar timetable follows Central European Time (CET).

09.00 - 09.15 Welcome and Introduction

09.15 - 12.00 Introduction to Project Finance

  • What is Project Finance?
  • Why Use Project Finance?
  • Development of Project Finance
  • Features of Project Finance
  • Advantages and Disadvantages of Project Finance

The Project Finance Markets

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

12.00 - 13.00 Lunch

13.00 - 16.30 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

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

Training catalogue in PDF
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