Project Finance Training Course
Course Highlights and Agenda
This unique project finance training course has been designed for professionals needing a thorough grounding in limited-recourse financing applied to a range of capital-intensive industries, such as:
- Power generation
- Alternative energy
- Upstream, midstream and downstream oil and gas and petrochemicals
- Mining
- Infrastructure
- PPP/PFI projects
Scroll down for agend or book onto this course.
Agenda
What is Project Finance?
- Definition – “Project Finance” as opposed to financing of a project
- Limited-recourse and non-recourse finance
- Origins of project finance
- Who uses project finance and why?
- What is the downside?
Sponsors and Lenders/ The Lender’s Risk Analysis
- Different risk/reward objectives of sponsors and lenders
- Balancing equity and debt
- Different types of debt – senior/ subordinated/mezzanine
- Structural & pricing drivers
– Country/political risk
– Sponsors
– Supply/resources
– Technology and construction/completion
– Sales/offtake
– Operation & maintenance
– Abandonment/decommissioning
– Environmental/regulatory
– Quantitative risk analysis - project modelling - Key ratios – annual debt service, loan life and project life covers
- Balancing equity and debt
– Design of project models
– Modelling best practice
– Developing an appropriate base case – setting economic and technical parameters
– Sensitivity analysis
– Choosing/calibrating sensitivities
– Getting to loan value
The Project Finance Process
- The Players and their interests
- Ownership structures
- Key project contracts
- Role of advisers:
– Financial advisers
– Technical advisers/consultants
– Legal counsel - The financial feasibility study/debt structuring
- The information memorandum
- Debt underwriting/syndication
- Financial close
- Post-close monitoring
Other Sources of Debt Finance / Risk Mitigation
- The bond markets
- Credit enhancement through guarantees
- Islamic finance
- Private political risk insurance market
- Export credit agencies
- Multilateral agencies/development banks
- Sponsor co-financing
Project Financing Documentation
- The term-sheet – purpose, legal status, binding/non-binding aspects
- Term-sheet/documentation provisions:
– Purpose clause
– Interest/fees
– Repayment/prepayment
– Representations & warranties
– Covenants/undertakings
– Conditions precedent
– Security
– Control accounts/waterfalls
– Events of default - Term-sheet interactive exercise
- Legal opinions
- LMA standard terms
Sustainable Lending – the Equator Principles
- Origins & purpose of the equator principles
- Development and current adherents
- Purpose & scope
– Best practice in sustainable lending
– Bank obligations
– Project classification under the equator principles - Practical application using examples
Energy Project Finance
- Oil & gas financing
– Overview of the oil & gas chain – upstream to downstream
– Upstream finance – single-field finance and “Borrowing Bases”
– Midstream finance – refineries and pipelines
– Downstream finance – liquefied natural gas (LNG) and petrochemicals - Power project finance
– Financing new-build power projects
– Merchant vs. contracted plants
– Alternative energy projects
* Wind power – onshore and offshore
* Waste-to-energy
* Hydro/wave power
Infrastructure Project Finance
- Toll-road and bridge financing
- Rail/light rail systems
- Water/desalination projects
PFI/PPP Projects
- Rationale for public to private projects
- The PFI/PPP process
- Regulatory/public sector oversight
- Project types
– Hospitals
– Schools
– Housing
– Prisons
What You Will Learn
The project financing process is examined in detail, focusing on financing term sheets and documentation. Delegates then progress to a study of the project financing challenges of today, using case studies and group discussions to apply the skills they have acquired. Particular emphasis is given to:
- Understanding the challenges of each industry branch
- Using the qualitative risk 'template' and econominc modelling to address those challenges
- Developing a feel for what is and is not achievable from a financing perspective - and why
- Recognising how structures have changed over time
Reviews
"Course leader - stunning!"
"Best course I have attended. Relevant to the point, structural and very interesting. Material very well presented"
"Well covered, excellent communication...what I like most about the course was the method of presentation by the instructor Steve Mills."
"All of it was interesting. Steve makes this course! Trainers this good are few and far. Industry insight scross all the perspectives involved and at a very detailed level. He knows the industry inside out across the sector."
"Aside from the appropriate course content, I felt that the mix of people allowed for various perspectives to be discussed. It gave us the change to meet people from other organisations and build a network"
"I really liked the ability of the trainer to break down the complexity of certain structures into more comprehensive ones. I feel more confident and prepared now about the subject area. My knowledge went from poor to excellent!"
