Project Finance Course Outline

Course Description: Project Finance Training Course has nineteen (19) modules arranged in three parts. The first part, Setting the Stage defines the current role of project finance as a mechanism for raising money to implement projects and describes the parties that are a part of the process. A second part, Project Agreements, probes into the documentation used for a power generating plant, the "classic project finance", as well as the structure and shape the contracts must have in order to be bankable. The third part of the course, Finance Documents, sharply focuses on the broad principles used by lenders to negotiate their loans vis-à-vis sponsors.

The coursework relies partly on classroom lectures, but depends greatly on interactive discussion amongst participants. Two tests will be provided to the course participants, a mid-term test and a final examination. In addition one classroom case study will be totally dedicated to financial modelling. The course is intended to improve the understanding of young bank professionals in regard to the techniques employed in cash flow lending as well as the principles used to make it successful.

Topic

I. Setting the Stage

  • Origins of Modern Project Finance
  • Overview of Project Finance
  • Sources of Finance
  • Project Development
  • Project Development: Government's Perspective
  • Infrastructure Projects

II. Project Agreements

  • Projects Agreements I
  • Projects Agreements II
  • Credit Enhancement
  • Financial Model
  • Real Options Analysis
  • Specialized Credit Enhancements

III. Finance Documents

  • Loan Agreements
  • Equity Support and Other Agreements
  • Layered Finance
  • Project Visit
  • Interest Rate Hedge
  • Designing Security Package

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