An Introduction to Project Finance Theory

Forvis Mazars Financial Modelling

An Introduction to Project Finance Theory

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3 day duration

Our Introduction to Project Finance Theory course has been specifically designed by the Project Finance training specialists, CCC Training, to help participants with little or no prior knowledge of project finance develop sufficient understanding to enable them to analyse project finance structures and work with confidence on a wide range of project finance transactions.

A practical journey through the principles of Project Finance

Supported by a comprehensive package of pre-course material, participants are guided through the key principles of qualitative risk identification & mitigation; financial risk analysis; debt structuring; project finance documentation; and the importance of ESG considerations.

Using specifically-designed case studies to consolidate understanding of transaction review; financial model sensitivity analysis; debt sizing; and financial structures, this course provides an overview of how project financing techniques can be applied to each of the core project finance sectors – power & renewables, infrastructure / PPP and oil & gas.

The Introduction to Project Finance Theory course will enable you to

  • Acquire a solid foundation of key Project Finance concepts and their practical application in today’s transactions
  • Gain a commercial understanding of industry metrics, funding mechanics, risk analysis and legal structures
  • Develop a clear understanding of the process for raising Project Finance debt and key lender requirements
  • Understand the impact of ESG standards and regulations
  • Absorb project finance industry insights based on examples from a range of sectors

Develop your career by learning from experienced industry professionals

This course is delivered by trainers that each have specific expertise in the analysis, structuring and documentation of limited recourse finance transactions, gained at some of the world’s leading project finance banks, law firms and advisory boutiques. Whether you are an investor or a developer, if you are looking to fast track your Project Finance career this course will provide you with the tools you will require to succeed.

Who should attend this course?

This course is for anyone involved in infrastructure and project finance who wants to deepen their understanding of project finance structures, risk analysis, key documentation issues and ESG considerations. It provides a ‘deep dive’ into project finance, so would be a great starting point or refresher for anyone working in this area.

Required knowledge: None

There are no prerequisites for this course.

In-house and eLearning options in project finance theory

Courses can be delivered in-house anywhere in the world and tailored to meet the needs of a specific group of individuals. We can also provide courses that combine eLearning (downloadable modules and recorded sessions) with live interactive webinars.
So if you want to know more about the Project Finance theory courses we can deliver, please contact us and we would be delighted to design a course to meet your specific requirements.

Upcoming

Location: Date:

Course Agenda

Pre-course Material

  • The Basics of Project Finance – a workbook describing the fundamentals of project finance, supported by three videos.
    • What is Project Finance?
    • Project Finance Loan Structures
    • Why Use Project Finance?
  • Project Finance Glossary

Course Content

  • The Fundamentals of Project Finance
    • What is Project Finance?
    • Project Finance loan structures
    • The importance of cashflow
    • Why Project Finance is used
    • Current trends

 

  • The Project Finance Process
    • Technical feasibility analysis
    • Financial feasibility analysis
    • Financial structuring:
      • The importance of economic modelling
      • Market soundings
      • Syndication issues
      • Due diligence advisers
      • Term Sheets and Information Memoranda
    • Approach to the financial markets
    • Negotiation of financial agreements
    • Financial closing / drawdown / refinancing

 

  • Risk Identification & Mitigation
    • Sponsor Risk
    • Country / Political Risk
    • Construction & Technology Risk
    • Operation & Maintenance Risk
    • Supply / Feedstock Risk
    • Offtake Risk
    • Regulatory Risk
    • Environmental, Social & Governance Risk

 

  • Debt Sizing & Structuring
    • Key Measurement Tools for Debt Sizing
    • Repayment Profiles & Debt Tenors
    • Hedging Instruments
    • Understanding the Financial Model
      • Key Inputs
      • Sensitivity Analysis

 

  • Export Credit Agency Financing
    • The ECA Financing Process
    • The “OECD Consensus” and Non-OECD ECAs
    • Overview of ECA Tools and Programmes
    • Sourcing Projects & National Content
    • Sovereign Borrowers, Corporates & SPVs
    • Specific Documentation Provisions

 

  • Environmental & Social Awareness
    • The Equator Principles – Origins and Concept
    • Recent Update on Equator Principles IV
    • Obligations and Reporting in Project Finance
    • The ESG Momentum in the Financial Markets
    • Beyond the Equator Principles
    • Origins of the ESG concept
    • New financial tools for Project Finance

 

  • Key Project Agreements & Clauses
    • EPC/ Construction Contracts
    • Delay and Performance Liquidated Damages
    • Force Majeure
    • Concession Agreements
    • Offtake Agreements
    • PPAs and Corporate PPAs
    • Change in Law
    • Fuel Supply Agreements
    • Operation and Maintenance Agreements

 

  • Facility Agreements & Common Terms Agreements
    • Analysis of Core Terms
    • Conditions Precedent
    • Mandatory Prepayment
    • Representations and Warranties
    • Covenants
    • Events of Default

All topics are delivered with reference to specifically-designed case study exercises.

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