The Mechanics of Project Finance - A Post Graduate Certificate Delivered by Distance Learning

This is the only distance learning project finance course delivered exclusively online that operates at such an intensive level and is taught by one of the world's most respected project finance educators. It is also the only academically accredited course of its kind, with a postgraduate certificate available from Middlesex University.

The course has been structured to enable students to grasp the complexities of modern project financing and take you through everything from the basic concepts of the topic through to structuring the deal, contracts and the nuances of the different sectors such as oil and gas infrastructure. The revolutionary toolkit approach allows you to soak up the practical components of the course and absorb the information at a pace that is right for you.

As a special introductory offer, we are giving you the opportunity to preview the first module free of charge, giving you the chance to experience the quality of the course before signing up to complete the rest of the programme.

With the global appetite for project finance set to continue unabate,; this the ultimate learning resource for those in the industry looking to develop their skills and knowledge.

Scroll down for agenda or book onto this course.

Module 1: An Introduction to Project Finance

Module Learning Aims and Objectives

• Explain the meaning of the term “project finance” and compare and contrast it with other forms of debt capital
  – especially corporate borrowing.
• Set out the reasons why companies choose (or do not choose) to use project finance and explain the contractual structures typically employed.
• Contrast the risk/reward relationship with the project enjoyed by the sponsor with that of the banker and how this affects the lender’s attitude to acceptance of risk.
• Explore the impact of the credit crisis on project financing
  – in particular how lenders’ attitudes have changed.

Module 2: Qualitative Risk Identification, Analysis & Mitigation (A)

Module Learning Aims and Objectives

• Explain the key qualitative risk factors analysed by lenders when evaluating a project financing – in this module particularly sponsor risk, country/political risk, completion period issues and operation & maintenance arrangements.
• Explore how these risk factors are perceived by bankers, mitigated and (where necessary) allocated to other parties within or outside the project structure.

Module 3: Qualitative Risk Identification, Analysis & Mitigation (B)

Module Learning Aims and Objectives

• Explain the key qualitative risk factors analysed by lenders when evaluating a project financing – in this module particularly supply risk, reserve risk, sales / offtake arrangements, approvals / permits issues, environmental factors and regulatory considerations.
• Explore how these risk factors are perceived, mitigated and (where necessary) allocated to other parties within or outside the project structure.

Module 4: Quantitative Risk Analysis and Debt Sizing/Structuring

Module Learning Aims and Objectives

• Examine how an economic model of the project’s projected cash flow is employed to structure the
  drawing and repayment of debt.
• Explain the use of “Cover Ratios” to size debt, structure the repayment of the financing, test the debt-servicing capacity of the project in downside scenarios and provide “command and control” mechanisms during the life of the financing.
• Analyse the impact of the debt structure on the IRR of the sponsor and how the lender’s need for debtservicing security is balanced with the objectives of the sponsor.

Module 5: Documenting the Deal

Module Learning Aims and Objectives

• Explain the process of documenting a project financing transaction and the components of the major documents
  – with particular reference to the loan agreement itself.
• Analyse the purpose and structure of the key parts of a project loan agreement – especially the control mechanisms incorporated to protect lenders in periods of weak cash flow or at the point of default.
• Develop an understanding of the way in which material issues are often resolved and how the credit crisis has impacted on loan documentation.

Module 6: The Project Finance Time-Line & Project Finance Security-Taking

Module Learning Aims and Objectives

• Explain in detail the process of negotiating and documenting a limited-recourse financing and the way in which the steps (and their duration) have been impacted by the Credit Crisis.
• Provide a clear appreciation of the different instruments typically used by lenders to acquire a first-ranking security interest in respect of the project vehicle company, fixed and current assets, project contracts and other rights.

Each delegate to complete either:  ELECTIVE PATH A or ELECTIVE PATH B

ELECTIVE PATH A – TWO MODULES TO COMPLETE

Elective Module 1: Infrastructure Project Finance

Module Learning Aims and Objectives

• Set out in detail the qualitative risk analysis and debt structuring features peculiar to infrastructure project finance.
• Provide a clear understanding of the variations in financing structure and practice seen in key sub-sectors such as road, rail, port and airports.
• Test understanding through a detailed financing case study requiring risk analysis and the exercise of judgement on whether a project is bankable and (if so) optimally structured.

Elective Module 2: PPP/PFI Project Finance

Module Learning Aims and Objectives

• Set out in detail the qualitative risk analysis and debt structuring features peculiar to PPP/PFI project finance, the drivers for the establishment of the sector and the key documents which underlie PPP/PFI projects – particularly the concession.
• Test understanding through a detailed financing case study requiring risk analysis and the exercise of judgement on whether a project is bankable and (if so) optimally structured.

ELECTIVE PATH B – TWO MODULES TO COMPLETE

Elective Module 1: Oil & Gas/Mining Project Finance

Module Learning Aims and Objectives

• Explain the particular challenges faced by lenders providing limited-recourse finance to projects in the extractive industries, especially where the bank is to accept oil/gas/mineral reserve risk.
• Provide a clear understanding of the variations in financing structure and practice seen in key sub-sectors such as upstream reserve-based lending, refinery finance, pipelines and storage, LNG and petrochemicals.
• Test understanding through a detailed financing case study requiring risk analysis and the exercise of judgement on whether a project is bankable and (if so) optimally structured.

Elective Module 2: Conventional & Renewable Power Project Finance

Module Learning Aims and Objectives

• Set out in detail the qualitative risk analysis and debt structuring features peculiar to power project finance, the impact of the power sales arrangements on debt capacity and structure and the differences between conventional (gas and coal-fired) projects and those involving renewable energy sources.
• Test understanding through a detailed financing case study requiring risk analysis and the exercise of judgement on whether a project is bankable and (if so) optimally structured.

The postgraduate project finance course takes place over sixteen weeks and comprises of six core modules, followed by two elective modules which you need to choose between. Every two weeks the next module will be released and the associated assessment must be completed before the end of the course. The beauty of this form of learning is the investment of time is really up to you. You can simply read each module, complete the assessment and move on to the next or take more time to fully digest the topic, re-read the modules and read around the subject by taking full advantage of the recommended complimentary reading list.

Now you can choose to take the accredited option for this course and receive a post graduate certificate on completion. This is a Middlesex University qualification, jointly developed by Middlesex University and IFF, and quality assured by Middlesex University. However, don’t forget if accreditation isn’t important to you there is still the opportunity to take the standard non-accredited course.

What Does the Certificate Entail?
In addition to studying the eight units and passing eight short self assessment tests after each unit, you will need to submit a 2,000 word assignment at the end of the course which will be assessed. The assignment will be a cumulative project that you will work through and build upon during each stage of the course. If you wish to book on the certification course there will be an extra assessment fee of £300.
Entry Requirements Participants wishing to undertake the Post Graduate Certificate are required to have a degree or equivalent qualification (or relevant work experience). Participants wishing to undertake the course but not receive the Post Graduate Certificate are not required to have any formal qualifications.