Project Finance Training Week

5 days 18-22 Sep 2017, Johannesburg South Africa £3,745.00 Download brochure Add to basket
5 days 25-29 Sep 2017, Singapore Singapore $6,800.00 Download brochure Add to basket

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Overview

Attend this training week programme and save over 12.5% on the combined price of:

Take advantage of the special price of US$8,700 if you attend the full Project Finance Training week and Conventional & Renewable Independent Power Projects & Cashflow Modelling.

This five-day Project Finance Training Week is designed to assist bankers, private investors, project developers, equipment suppliers, official creditors, and other project participants in acquiring all the skills they will need to evaluate project financing transactions in a wide variety of industrial sectors.  Relying heavily on examples from around the world, attendees will be brought up to date on the very latest techniques and innovative approaches to structuring and funding projects.

The program is divided into two modules that may be attended in full or booked separately:


Module 1 conducted from days 1 to 3 comprises the program’s core. A rapid paced discussion of key aspects of project structures characteristic of oil and gas, energy, transportation, social services, water and sanitation, and other sectors. At its conclusion participants will be able to break analysis into its component parts. They will have gained techniques for assembling market information, making qualitative judgments, developing key agreement and conducting thorough quantitative financial analysis of projects. The module identifies the many sources of finance and risk support, from bank markets, to bond issuance, leasing, Islamic Finance, and other foreign and local currency funding alternatives, highlighting their differences, requirements and investor concerns. 

Module 2 Building on a foundation established in the first portion of the program, this module introduces elements unique to projects in the natural resource sectors. Discussion and cases cover upstream oil and gas delivery as well as green-field and later phase mining projects. Approaches to equipment finance are highlighted. Effective applications of interest rate, currency and commodity derivatives are described.

 

 

Who should attend

The courses will be of value to professionals in the following areas:

  • Bankers/Investment Bankers
  • Project Finance Modelers
  • Financial Advisors
  • Sponsors/Project Joint Ventures
  • Project Developers
  • Government/PPP Agencies
  • Public Sector Managers
  • Export Credit Agencies
  • Multilateral Agencies
  • Accountants/Taxation Advisers
  • Financial Analysts
  • Share market Analysts/Brokers
  • M&A/Buyout Specialists
  • Privatization Executives
  • Company Treasurers/Directors
  • Credit Committee Staff
  • Rating Agencies
  • Project Managers/Engineers
  • Project Consultants
  • Investment/Portfolio Managers
  • Insurance Advisers/Brokers

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

Singapore
Meg Osius (new)
The Course Director specializes in capital markets, risk management, and international project finance. She works with corporations, financial institutions, public agencies, law firms, and private equity investors. She has had extensive transactional experience in the oil, gas, power, transport, and telecom sectors.

She began her career at JP Morgan Chase Manhattan Bank, where she structured highly leveraged deals and project financings also advising clients on foreign exchange and other price risk management strategies. Before that she was responsible for evaluating the quality of the bank’s global loan portfolio as well as that of its newly acquired affiliates. In that role she had extensive experience with workout and distressed debt.

She has published articles in the business press and co-authored several self-study guides covering international project finance, trade and export finance, foreign exchange, and financial futures. The World Bank has published her articles on approaches to financial analysis in emerging markets.

Previously she was Chairperson of the Technical Advisory Panel (TAP) of the Public Private Infrastructure Advancement Fund (PPIAF) managed by the World Bank. The fund provides technical assistance to emerging market governments in order to encourage private involvement in infrastructure development. She is currently a Director of British Caribbean Bank and Waterloo Holdings Ltd. She received an M.B.A. from INSEAD, the European Institute of Business  Administration, in Fontainebleau, France. Her B.A. degree is from Princeton University.
Johannesburg
Meg Osius (new)
The Course Director specializes in capital markets, risk management, and international project finance. She works with corporations, financial institutions, public agencies, law firms, and private equity investors. She has had extensive transactional experience in the oil, gas, power, transport, and telecom sectors.

She began her career at JP Morgan Chase Manhattan Bank, where she structured highly leveraged deals and project financings also advising clients on foreign exchange and other price risk management strategies. Before that she was responsible for evaluating the quality of the bank’s global loan portfolio as well as that of its newly acquired affiliates. In that role she had extensive experience with workout and distressed debt.

She has published articles in the business press and co-authored several self-study guides covering international project finance, trade and export finance, foreign exchange, and financial futures. The World Bank has published her articles on approaches to financial analysis in emerging markets.

Previously she was Chairperson of the Technical Advisory Panel (TAP) of the Public Private Infrastructure Advancement Fund (PPIAF) managed by the World Bank. The fund provides technical assistance to emerging market governments in order to encourage private involvement in infrastructure development. She is currently a Director of British Caribbean Bank and Waterloo Holdings Ltd. She received an M.B.A. from INSEAD, the European Institute of Business  Administration, in Fontainebleau, France. Her B.A. degree is from Princeton University.

Venue

Johannesburg

Johannesburg Hotel

This programme takes place on a non-residential basis at a central Johannesburg hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Singapore

4-5 Star Hotel in Singapore

All of our courses are held in 4 – 5 star hotels, chosen for their location, facilities and level of service. You can be assured of a comfortable, convenient learning environment throughout the duration of the course.

Due to the variation in delegate numbers, we will send confirmation of the venue to you approximately 2 weeks before the start of the course. Course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.



We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Agendas are localised, please select your preferred location.

DAY 1 

Advanced Project Finance Workshop (3 days)
Themes: Structuring Projects and Creating a Security Package; Oil and Gas Structures


Project Finance Overview

  • Current Challenges /Approaches
  • Who are the Players? Identifying and Allocating Risks
  • What Can Go Wrong?
  • Examples from the Energy Sector
  • Financing Infrastructure

Various Projects and Approaches to Risk Identification Across Sectors

  • Risks in Development,
  • Construction, and Operating Risks
  • Feedstock and Supply
  • Market Risks
  • Environmental Risks
  • Financial Risks
  • Political and Regulatory Risks

Sources of Finance: Financing Checklist

  • Domestic and Foreign Banks
  • Bond Markets
  • Development Banks, ECAs and Other Official Creditors
  • Leasing
  • Islamic Finance
  • Sources of Equity

 

Cashflow Forecasting

  • Financial Modeling and Cash Flow Analysis
  • View of Lenders: DSCR and PV Coverage
  • Equity Considerations: IRR and NPV
  • Approaches to Evaluating the Cost of Capital
  • Project Returns vs. Equity Returns
  • Forecasting Techniques and Limitations
  • Probabilistic vs. Non-Probabilistic Model-Building


Case Study: Using Cash Flow Modeling Software to Finance a Gas Processing Plant

Participants break into small groups to prepare a case study that analyzes a fertilizer project. A computer simulation will be used to model cashflows. Groups will present their solutions.


DAY 2

Themes: Sources of Finance and Credit Enhancement; Financing Transportation and Other Infrastructure


Case Discussion

Legal Issues and Documentation

  • Legal Environment and Regulatory Conditions
  • Commercial Points and Legal Points in Various Project Structures:
    - Incorporated and Unincorporated Joint Ventures
    - Partnerships and Limited Partnerships
  • Key Contractual Agreements and Structuring Considerations
  • Developing a Term Sheet
    - Limiting Recourse
    - Tax Gross Up Issues
    - Market Disruption Provisions
    - Reps and Warranties
    - Conditions Precedent
    - Covenants Including MAC Clauses
    - Hedging Requirements

Sources of Finance

  • Banks and the Current Club Loan Market
  • Syndicated Loan Financing
  • What Security do Banks Want?
  • Market Flex Clauses
  • Development Bank "A" and "B" Loans and Other Funding Sources
  • Inter-creditor Issues


Credit Enhancement Alternatives

  • Guarantees and Insurance vs. Funding
  • Buyer and Supplier Credits
  • Bank Incentives Inherent in ECA Programs
  • Costs and Availability
  • Securitization of ECA Guarantees
  • Choosing a Special Purpose Vehicle


Transportation Project Considerations

  • Ownership Structure
  • Outright and Partial Government Ownership
  • Long-Term Concessions and PPP structures like DBFO
  • Privatization of Seaports; Airport Financing
  • Exercise: Constructing a Risk Matrix for a Transport Project

Case Study: Airport Finance; Negotiating a Term Sheet

Participants will break into groups to work on this PPP project structure. Discussion will focus on project risks, their allocation through contracts, the mix of financing, cash flow projections. Also, rating agency considerations in evaluating the proposed financing structure.



DAY 3

Themes: More Financing Sources and Structuring Considerations; Power Project Transactions


Case Discussion

Using Capital Markets for Projects

  • Private Placements and Eurobond Issuance for Projects
  • Comparing Bond Issuance to Bank Loans
    - Nature of Investors, Timing and Flexibility
    - Project Size and Relative Cost
    - Security Requirements
    - Negative Arbitrage Issues
    - The Due Diligence Process / Road Shows
    - Rating Agency Considerations

Leasing Applications

  • Leasing Applications in Projects
  • Evaluating Cost

Case Examples: Colombia and Brazil

Islamic Finance

  • Definitions, Principles, and Authoritative Sources
  • Structures: Murabaha, Istisna and Ijara
  • Examples of Petrochemical and Other Transactions


Conventional and Renewable Power

  • Market forces and the effect on electrical supply
  • Fragmentation of electricity generation
  • Gencos/transcos/discos
  • Merchant power plants (MPPs)
  • Rating agencies' analytical model
  • Various types of renewable energy projects
  • Comparing renewable to traditional fossil fuel burning plants
  • Government incentives for renewable energy projects


Case Study: Financing a Gas-fired Power Plant

Risk allocation among various project participants in a gas-fired cogeneration electricity and water desalination plan. Testing the project's cash flows under varying scenarios with a cash-flow simulation model. What are acceptable DSCR levels? Equity returns?

Self-test and Wrap-up 



DAY 4

Financing Natural Resources: Oil, Gas and Mining – 2 Days
Themes: Natural Resources Projects

 
Upstream, Midstream and Downstream Oil and Gas

  • Structure: Upstream, Midstream and Downstream
  • Hydrocarbon Basics: Geology, Reserves
  • Supply and Consumption
  • Oil Production: Process Depletion and Enhanced Recovery
  • Financing Structures: Balance Sheet vs. Limited Recourse
    - Field Development and Platform Types
    - Production Facilities
    - Building and Financing Pipelines
    - Refineries and Petrochemical Plants
    - LNG Facilities


Allocating Risk

  • Technology and Construction/Completion
  • Reservoir/Reserve Risks
  • Feedstock Risk
  • Sales and Off-take
  • Operation and Maintenance
  • Abandonment/Decommissioning
  • Environmental/Regulatory Issues
  • Country/Political Risk


Logistics and Transportation Financing

  • Logistics: Pipelines, Shipping, and Storage
  • Types of Tankers
    - AFRA Classes (Average Freight Weight Assessment)
  • ULCC to Tanker Lightering

 

Stages in Financing Natural Resources Projects

  • Exploration/ Geology/Drilling/Reserve Estimation
  • Reserve-based lending and Borrowing bases
  • Mezzanine Funding
  • Oil and Gas Reserve Categories (P1, P2, P3)
  • Common Measures: (Loan Life Cover Ratio (LLCR), Project Life Cover Ratio (PLCR), Reserve Tail



Case Study: Financing an Oil Rig

Participants will break into small groups to prepare a case study concerned with equipment financing. A computer simulation will be used to model possible outcomes. Groups will present their solutions.



Day 5

Themes: Oil and Gas Reserve and Off-take Evaluation; Mining Projects; Political Risk Support; Risk-Management with Derivatives

 
Case Study: Financing a Condensate Field Development Project

Evaluating the security package and forecast cash flows for a condensate field. Structuring Approaches. Finding funding.

Price Volatility and Risk Management with Commodity Derivatives in Projects

  • Financial price movements today: volatility and risk
  • Commodity-linked derivatives and securities


Sources of Credit and Risk Support in International Projects

  • Official Risk Enhancers
  • Development Banks and Natural Resources Projects

Mining Transactions

  • Special Issues
  • Single Asset Projects and Asset Depletion
  • Off-take Arrangements
  • Construction Issues and Engineering
  • Mine Operating Risk
  • Environmental and Country Risk

Case Study: Financing a Copper Mine in Mongolia

Structuring a sales contract to support project financing of industrial minerals project. 



Wrap-up 

CLOSE OF PROGRAM
 


 

DAY 1 

Advanced Project Finance Workshop (3 days)
Themes: Structuring Projects and Creating a Security Package; Oil and Gas Structures


Project Finance Overview

  • Current Challenges /Approaches
  • Who are the Players? Identifying and Allocating Risks
  • What Can Go Wrong?
  • Examples from the Energy Sector
  • Financing Infrastructure

Various Projects and Approaches to Risk Identification Across Sectors

  • Risks in Development,
  • Construction, and Operating Risks
  • Feedstock and Supply
  • Market Risks
  • Environmental Risks
  • Financial Risks
  • Political and Regulatory Risks

Sources of Finance: Financing Checklist

  • Domestic and Foreign Banks
  • Bond Markets
  • Development Banks, ECAs and Other Official Creditors
  • Leasing
  • Islamic Finance
  • Sources of Equity

 

Cashflow Forecasting

  • Financial Modeling and Cash Flow Analysis
  • View of Lenders: DSCR and PV Coverage
  • Equity Considerations: IRR and NPV
  • Approaches to Evaluating the Cost of Capital
  • Project Returns vs. Equity Returns
  • Forecasting Techniques and Limitations
  • Probabilistic vs. Non-Probabilistic Model-Building


Case Study: Using Cash Flow Modeling Software to Finance a Gas Processing Plant

Participants break into small groups to prepare a case study that analyzes a fertilizer project. A computer simulation will be used to model cashflows. Groups will present their solutions.


DAY 2

Themes: Sources of Finance and Credit Enhancement; Financing Transportation and Other Infrastructure


Case Discussion

Legal Issues and Documentation

  • Legal Environment and Regulatory Conditions
  • Commercial Points and Legal Points in Various Project Structures:
    - Incorporated and Unincorporated Joint Ventures
    - Partnerships and Limited Partnerships
  • Key Contractual Agreements and Structuring Considerations
  • Developing a Term Sheet
    - Limiting Recourse
    - Tax Gross Up Issues
    - Market Disruption Provisions
    - Reps and Warranties
    - Conditions Precedent
    - Covenants Including MAC Clauses
    - Hedging Requirements

Sources of Finance

  • Banks and the Current Club Loan Market
  • Syndicated Loan Financing
  • What Security do Banks Want?
  • Market Flex Clauses
  • Development Bank "A" and "B" Loans and Other Funding Sources
  • Inter-creditor Issues


Credit Enhancement Alternatives

  • Guarantees and Insurance vs. Funding
  • Buyer and Supplier Credits
  • Bank Incentives Inherent in ECA Programs
  • Costs and Availability
  • Securitization of ECA Guarantees
  • Choosing a Special Purpose Vehicle


Transportation Project Considerations

  • Ownership Structure
  • Outright and Partial Government Ownership
  • Long-Term Concessions and PPP structures like DBFO
  • Privatization of Seaports; Airport Financing
  • Exercise: Constructing a Risk Matrix for a Transport Project

Case Study: Airport Finance; Negotiating a Term Sheet

Participants will break into groups to work on this PPP project structure. Discussion will focus on project risks, their allocation through contracts, the mix of financing, cash flow projections. Also, rating agency considerations in evaluating the proposed financing structure.



DAY 3

Themes: More Financing Sources and Structuring Considerations; Power Project Transactions


Case Discussion

Using Capital Markets for Projects

  • Private Placements and Eurobond Issuance for Projects
  • Comparing Bond Issuance to Bank Loans
    - Nature of Investors, Timing and Flexibility
    - Project Size and Relative Cost
    - Security Requirements
    - Negative Arbitrage Issues
    - The Due Diligence Process / Road Shows
    - Rating Agency Considerations

Leasing Applications

  • Leasing Applications in Projects
  • Evaluating Cost

Case Examples: Colombia and Brazil

Islamic Finance

  • Definitions, Principles, and Authoritative Sources
  • Structures: Murabaha, Istisna and Ijara
  • Examples of Petrochemical and Other Transactions


Conventional and Renewable Power

  • Market forces and the effect on electrical supply
  • Fragmentation of electricity generation
  • Gencos/transcos/discos
  • Merchant power plants (MPPs)
  • Rating agencies' analytical model
  • Various types of renewable energy projects
  • Comparing renewable to traditional fossil fuel burning plants
  • Government incentives for renewable energy projects


Case Study: Financing a Gas-fired Power Plant

Risk allocation among various project participants in a gas-fired cogeneration electricity and water desalination plan. Testing the project's cash flows under varying scenarios with a cash-flow simulation model. What are acceptable DSCR levels? Equity returns?

Self-test and Wrap-up 



DAY 4

Financing Natural Resources: Oil, Gas and Mining – 2 Days
Themes: Natural Resources Projects

 
Upstream, Midstream and Downstream Oil and Gas

  • Structure: Upstream, Midstream and Downstream
  • Hydrocarbon Basics: Geology, Reserves
  • Supply and Consumption
  • Oil Production: Process Depletion and Enhanced Recovery
  • Financing Structures: Balance Sheet vs. Limited Recourse
    - Field Development and Platform Types
    - Production Facilities
    - Building and Financing Pipelines
    - Refineries and Petrochemical Plants
    - LNG Facilities


Allocating Risk

  • Technology and Construction/Completion
  • Reservoir/Reserve Risks
  • Feedstock Risk
  • Sales and Off-take
  • Operation and Maintenance
  • Abandonment/Decommissioning
  • Environmental/Regulatory Issues
  • Country/Political Risk


Logistics and Transportation Financing

  • Logistics: Pipelines, Shipping, and Storage
  • Types of Tankers
    - AFRA Classes (Average Freight Weight Assessment)
  • ULCC to Tanker Lightering

 

Stages in Financing Natural Resources Projects

  • Exploration/ Geology/Drilling/Reserve Estimation
  • Reserve-based lending and Borrowing bases
  • Mezzanine Funding
  • Oil and Gas Reserve Categories (P1, P2, P3)
  • Common Measures: (Loan Life Cover Ratio (LLCR), Project Life Cover Ratio (PLCR), Reserve Tail



Case Study: Financing an Oil Rig

Participants will break into small groups to prepare a case study concerned with equipment financing. A computer simulation will be used to model possible outcomes. Groups will present their solutions.



Day 5

Themes: Oil and Gas Reserve and Off-take Evaluation; Mining Projects; Political Risk Support; Risk-Management with Derivatives

 
Case Study: Financing a Condensate Field Development Project

Evaluating the security package and forecast cash flows for a condensate field. Structuring Approaches. Finding funding.

Price Volatility and Risk Management with Commodity Derivatives in Projects

  • Financial price movements today: volatility and risk
  • Commodity-linked derivatives and securities


Sources of Credit and Risk Support in International Projects

  • Official Risk Enhancers
  • Development Banks and Natural Resources Projects

Mining Transactions

  • Special Issues
  • Single Asset Projects and Asset Depletion
  • Off-take Arrangements
  • Construction Issues and Engineering
  • Mine Operating Risk
  • Environmental and Country Risk

Case Study: Financing a Copper Mine in Mongolia

Structuring a sales contract to support project financing of industrial minerals project. 



Wrap-up 

CLOSE OF PROGRAM

 

Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
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  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
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