Fundamentals of Project Finance
Risk analysis, Credit Structuring, Modeling Projects (including PPP)
Course objectives :
- Identify the main financing techniques and structures (BOT, off-shore, PPP etc…) used to finance a project
- Assess the main risks involved for the industrial sponsors in structuring a project finance. Grasp how banks and rating agencies assess these risks on your industry, the countries of your clients or corporate risks
- Assess the debt capacity of a project
- Identify the main sources of finance and the key market players, including Export Credit Agencies and Multilateral Agencies
- Understand the latest issues and trends in the Project Finance industry, such as PPP’s
- Maximize practical learning with real – life case studies and exchange with other members of the group on your practice in the industry
Language :
This seminar will be conducted in English. Participants simply need a working knowledge of English in their own industry. Out of experience, they find it highly beneficial to upgrade and learn to communicate on their Project Finance practice in English as it has become every day’s language in the International Finance industry. By the end of Day 2, it becomes already a habit!
Period :
Two days face-to-face or 4 half-days off-line
Who should attend ?
- Bankers involved in the Project Finance business: juniors at Front office and middle office managers
- Financial Executives from industrial companies sponsoring projects
- Support managers: Legal, Risk management, Compliance
- Officials from governmental or regional agencies, involved in projects thru Public Private Partnerships (PPP’s)
Course program :
Day 1
Morning session
- Introduction. Project Finance: replacing it in the spectrum of Structured Finance debt products. Comparing it with asset finance and corporate finance.
- Review of recourse finance and subordination concepts.
- Main market players in the Project Finance business: industrial sponsors, commercial contractors (assets manufacturer, O&M, suppliers etc..), offtaker, host countries.
- Case study: a power plant in South East Asia.
Afternoon session
- Role and intervention instruments of Export Credit Agencies and Multilaterals (MLA’s).
- Key functions of banks in the financing process: lenders, arrangers, underwriters, trust agent, swap providers, lessors.
- Main financing structures: From B.O.T. to Design, Build & Operate (D.B.O.). The SPC as central financing structure. Legal, tax & accounting issues
- Case study: An example of infrastructure finance with Multilateral co - financing
Day 2
Morning session
- Introduction to the lending process and risk analysis. Credit due diligence from a banker’s perspective.
- Going through the main practicalities of a project financial model and assessing the debt capacity of a project using a real – life project deal.
Afternoon session
- Presentation of an Excel cash flow model and review of the main sensitivity parameters. Case study: renewable energy plant in France
- Review of recent developments in the Project Finance industry: Public Private Partnerships and PFI.
- Case study: drafting the term sheet of an infrastructure PPP project
- Review of the key covenants, Conditions Precedents and securing elements. Waterfall management issues.
- Conclusion and evaluation
Your seminar coach :
The seminar will be conducted by Sylvaine Chubert*, Executive Trainer and consultant in International Finance, France – the Netherlands
Ms Chubert has a twenty – year experience in International Banking, specifically in Structured Finance applied to export transactions as well as large project (Real estate) financing. She has worked for BNP Paribas (Paris and Amsterdam) in Commercial corporate lending, Rabobank International as Area Manager structuring international trade finance deals on Central and Eastern Europe and lately at Bouwfonds Property Finance and ING Real Estate as Senior Loan adviser, structuring, financing and advising on risk management of large (USD 50 to 500M) commercial R.E. projects. Sylvaine is Managing Director of SC Training & Consulting Sarl, a practice coaching banks, insurance companies and corporates on Financing and Risk management issues. Also, Sylvaine Chubert is Professor of Finance at Dauphine University in Paris and has lectured in Structured Finance for Coface and Agence Française de Developpement. She holds a Master degree from Sciences Po in Paris and a Certificate of Management from the E.U.A University in San Francisco, USA.
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