Project Finance Training Week (Modular Course)

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 + VAT* Download brochure Add to basket
5 days 11-15 Dec 2017, Hong Kong Hong Kong $6,800.00 Download brochure Add to basket

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Overview

FTS Eligible This programme is approved for listing on the Financial Training Scheme (FTS) Programme Directory and is eligible for FTS claims subject to all eligibility criteria being met. Please note that in no way does this represent an endorsement of the quality of the training provider and programme. Participants are advised to assess the suitability of the programme and its relevance to participants’ business activities or job roles. The FTS is available to eligible entities, at a 50% funding level of programme fees, subject to a cap of $2,000/participant/programme and all eligibility criteria being met. FTS claims may only be made for programmes listed on the FTS Programme Directory with specified validity period. Please refer to www.ibf.org.sg for more information. Please note that this course is only eligible for FTS Funding upon completion of all modules.

This course is made up of two separately bookable modules, attend both modules and save over 12.5% on the combined price of:

This training week is designed to help developers, equipment suppliers, official creditors, and other project participants acquire the skills needed to structure and evaluate project financing transactions in a wide variety of industrial sectors. 

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


Module 1: Advanced Project Finance Workshop - 4 days

Drawing heavily upon examples of oil and gas, mining, power, transport and other infrastructure transactions, from the Asia region and elsewhere, during this rapid paced four-day session participants will hear about the latest techniques and innovations in funding projects. They will learn to structure project transactions to minimize risks and improve prospects for future strong performance both in existing portfolios and new transactions.

Module 1 helps participants understand the many sources of finance and risk support available to projects globally. From banks, to bond issuance, leasing and other foreign and local currency funding, it highlights differences among markets, disclosure requirements, distribution, investor considerations, etc. Effective project risk management using interest rate, currency and commodity derivatives is described.

 

Module 2: Financing Oil, Gas and LNG Projects, Including Cashflow Modeling - 1 Day

Building upon Module 1, this session will focus on funding oil, gas and LNG projects. Approaches to equipment finance and the use of capital markets are detailed as well as other sources of finance common to this sector.

Discussion of the sector is integrated into a practical cash flow modeling exercise. Using excel software, participants create a model for a 2-Train LNG Facility useful for examining project debt capacity as well as return on investment.

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.

Hong Kong
Meg Osius
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
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.
Singapore
Meg Osius
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.

Hong Kong

4-5 Star Hotel in Hong Kong

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.

inhouse-learn-more

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 (4 days)

Themes: Structuring Projects and Creating a Security Package; Oil and Gas Structures


Project Finance Overview

  • Current challenges in Southern Africa for project finance
  • Who are the players?
  • Identifying and allocating risks
  • What can go wrong?

Examples: Financing a pipeline, tankers; other oil and gas projects

  • PPP and project finance: financing infrastructure
  • BOO, BOT, BOOT, DBFO and other approaches
  • Private investment in public infrastructure

Examples: Power projects and toll roads.

Projects and Risk Identification

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

Examples: Gas field development and infrastructure, oil refineries, LNG, Electricity plants.


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 Modelling Approaches 

  • 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: Financing 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: Legal Issues; Bank Finance; Export Credit Agencies; Power Markets



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

Export Finance Techniques (ECAs)

  • 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




Liberalizing Power Markets

  • Market forces and the effect on electrical supply
  • Fragmentation of electricity generation
  • Generating, Transmission, Distribution
  • Merchant Power Plants (MPPs)
  • Rating Agencies' analytical model


Renewable Energy Projects

  • Growth of the market and various types of renewable energy projects
  • Comparing renewable to traditional fossil fuel burning plants
  • Project economics
  • What is driving the investment?
  • Government incentives in various countries


Case Study: Financing a Gas-fired Power Plant
Risk allocation among various project participants to finance and construct a power plant. Testing the project's cash flows under varying scenarios with a cash-flow simulation model. What are acceptable DSCR levels? What returns does equity look for?




DAY 3

Themes: Bank Markets; Development Banks; PPP for Transportation and other Infrastructure Projects

  • Club Loans and Syndicated Loan Financing
  • What security do banks want?
  • Market flex clauses and “Mini-perms”
  • Inter-creditor issues


Roles for Development Banks and Agencies

  • World Bank Group
  • Regional Multilateral development banks (Asian Infrastructure Investment Bank, Asia Development Bank, Africa Development Bank, EBRD, EIB, Inter-American Development Bank, Islamic Development Bank, Others)
  • Bilateral agencies (FMO, DEG, OPIC, Proparco, etc.)


Islamic Structures

  • Murabaha, Istisna, Ijara and Sukuk in Projects
  • Examples: Petro -Rabigh


PPP: Roads, Railroads, Airports, Ports and Other Transportation Projects

  • Public Private Partnerships (PPP) Principles
  • Roles for the Public and Private Sector
  • Different Structures and Degrees of Private Participation
  • Outright and partial government ownership
  • Long-term concessions and DBFO
  • Privatization of seaports; airport financing

Exercise: Constructing a risk matrix

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, as well as rating agency considerations in evaluating the proposed financing structure.


DAY 4

Themes: Capital Markets; Risk Management with Derivatives, PPP for Water and Other Infrastructure


Using Capital Markets

  • 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
  • Private risk insurers and Mono-lines


Price Volatility and Risk Management with Derivatives in Projects

  • Financial price movements today: volatility and risk
  • Commodity-linked derivatives and securities
  • Using interest rate and currency swaps to manage risk in projects
  • Options: caps, floors and collars


Water Infrastructure

  • Special features of limited recourse projects in water and sanitation
  • Array of structures: Service Agreements Leasing, BOT, Privatization
  • Who are the players? Investors and lenders?
  • Desalination and electricity projects
  • Case examples and PPP transactions


Case Study: Water Treatment facility

Participants will break into groups to prepare a case study concerned with financing a wastewater treatment plant.

Social Infrastructure

  • Financing Hospitals, Schools, Prisons, Others
  • Concessions and Contract Terms
  • Risk Evaluation and Allocation
  • Monitoring Requirements

Self-Test



Day 5

Financing Natural Resources: Oil, Gas and Mining – 1 Day
 

Themes: Oil, Gas and Cashflow Modeling

 
Participants will spend a day building a model for an LNG facility. They will assess a wide range of scenarios in order to test a limited-recourse financing package for debt capacity and suitability for investment. With discussion of common approaches to modeling with Excel, “dos’ and ‘don’ts” as well as the practical use models for negotiations.

Modeling Workshop Overview: Objectives and Approaches

  • Constructing a Model / Common Myths
  • Variations by Project Type

Structuring the Model and Organizing the Data to Create a Cashflow Statement

  • Developing the Assumptions Page
  • Construction Costs and Timing
  • Operating Cost, Plant Capacity Usage, Fixed and Variable Costs
  • Reinvestment, Plant Expansion, Productivity Shifts


Developing the Profit and Loss and Balance Sheet

  • Factoring in Reserves
  • Considering Currencies
  • Tax Calculations


Financing Section

  • Equity First or Pro Rata
  • Manually Designed Equity Subscription
  • Draw-down of Debt Linked to Specific Contracts or Expenditures or in a Hierarchy

Ratios and Sensitivity Analysis: Objectives and Limitations

  • Measuring Debt Capacity and Investor Return
  • Using Modeling Output for Initial Project Vetting
  • Supporting on-going Negotiations

Summary and Wrap-up of Modeling Workshop

End of Program

DAY 1 

Advanced Project Finance (4 days)

Themes: Structuring Projects and Creating a Security Package; Oil and Gas Structures


Project Finance Overview

  • Current challenges in Southern Africa for project finance
  • Who are the players?
  • Identifying and allocating risks
  • What can go wrong?

Examples: Financing a pipeline, tankers; other oil and gas projects

  • PPP and project finance: financing infrastructure
  • BOO, BOT, BOOT, DBFO and other approaches
  • Private investment in public infrastructure

Examples: Power projects and toll roads.

Projects and Risk Identification

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

Examples: Gas field development and infrastructure, oil refineries, LNG, Electricity plants.


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 Modelling Approaches 

  • 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: Financing 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: Legal Issues; Bank Finance; Export Credit Agencies; Power Markets



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

Export Finance Techniques (ECAs)

  • 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




Liberalizing Power Markets

  • Market forces and the effect on electrical supply
  • Fragmentation of electricity generation
  • Generating, Transmission, Distribution
  • Merchant Power Plants (MPPs)
  • Rating Agencies' analytical model


Renewable Energy Projects

  • Growth of the market and various types of renewable energy projects
  • Comparing renewable to traditional fossil fuel burning plants
  • Project economics
  • What is driving the investment?
  • Government incentives in various countries


Case Study: Financing a Gas-fired Power Plant
Risk allocation among various project participants to finance and construct a power plant. Testing the project's cash flows under varying scenarios with a cash-flow simulation model. What are acceptable DSCR levels? What returns does equity look for?




DAY 3

Themes: Bank Markets; Development Banks; PPP for Transportation and other Infrastructure Projects

  • Club Loans and Syndicated Loan Financing
  • What security do banks want?
  • Market flex clauses and “Mini-perms”
  • Inter-creditor issues


Roles for Development Banks and Agencies

  • World Bank Group
  • Regional Multilateral development banks (Asian Infrastructure Investment Bank, Asia Development Bank, Africa Development Bank, EBRD, EIB, Inter-American Development Bank, Islamic Development Bank, Others)
  • Bilateral agencies (FMO, DEG, OPIC, Proparco, etc.)


Islamic Structures

  • Murabaha, Istisna, Ijara and Sukuk in Projects
  • Examples: Petro -Rabigh


PPP: Roads, Railroads, Airports, Ports and Other Transportation Projects

  • Public Private Partnerships (PPP) Principles
  • Roles for the Public and Private Sector
  • Different Structures and Degrees of Private Participation
  • Outright and partial government ownership
  • Long-term concessions and DBFO
  • Privatization of seaports; airport financing

Exercise: Constructing a risk matrix

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, as well as rating agency considerations in evaluating the proposed financing structure.


DAY 4

Financing Natural Resources: Oil, Gas and Mining – 1 Day

Themes: Capital Markets; Risk Management with Derivatives, PPP for Water and Other Infrastructure


Using Capital Markets

  • 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
  • Private risk insurers and Mono-lines


Price Volatility and Risk Management with Derivatives in Projects

  • Financial price movements today: volatility and risk
  • Commodity-linked derivatives and securities
  • Using interest rate and currency swaps to manage risk in projects
  • Options: caps, floors and collars


Water Infrastructure

  • Special features of limited recourse projects in water and sanitation
  • Array of structures: Service Agreements Leasing, BOT, Privatization
  • Who are the players? Investors and lenders?
  • Desalination and electricity projects
  • Case examples and PPP transactions


Case Study: Water Treatment facility

Participants will break into groups to prepare a case study concerned with financing a wastewater treatment plant.

Social Infrastructure

  • Financing Hospitals, Schools, Prisons, Others
  • Concessions and Contract Terms
  • Risk Evaluation and Allocation
  • Monitoring Requirements

Self-Test



Day 5

 

Themes: Oil, Gas and Cashflow Modeling

 
Participants will spend a day building a model for an LNG facility. They will assess a wide range of scenarios in order to test a limited-recourse financing package for debt capacity and suitability for investment. With discussion of common approaches to modeling with Excel, “dos’ and ‘don’ts” as well as the practical use models for negotiations.

Modeling Workshop Overview: Objectives and Approaches

  • Constructing a Model / Common Myths
  • Variations by Project Type

Structuring the Model and Organizing the Data to Create a Cashflow Statement

  • Developing the Assumptions Page
  • Construction Costs and Timing
  • Operating Cost, Plant Capacity Usage, Fixed and Variable Costs
  • Reinvestment, Plant Expansion, Productivity Shifts


Developing the Profit and Loss and Balance Sheet

  • Factoring in Reserves
  • Considering Currencies
  • Tax Calculations


Financing Section

  • Equity First or Pro Rata
  • Manually Designed Equity Subscription
  • Draw-down of Debt Linked to Specific Contracts or Expenditures or in a Hierarchy

Ratios and Sensitivity Analysis: Objectives and Limitations

  • Measuring Debt Capacity and Investor Return
  • Using Modeling Output for Initial Project Vetting
  • Supporting on-going Negotiations

Summary and Wrap-up of Modeling Workshop

End of Program

DAY 1 

Advanced Project Finance (4 days)

Themes: Structuring Projects and Creating a Security Package; Oil and Gas Structures


Project Finance Overview

  • Current challenges in Southern Africa for project finance
  • Who are the players?
  • Identifying and allocating risks
  • What can go wrong?

Examples: Financing a pipeline, tankers; other oil and gas projects

  • PPP and project finance: financing infrastructure
  • BOO, BOT, BOOT, DBFO and other approaches
  • Private investment in public infrastructure

Examples: Power projects and toll roads.

Projects and Risk Identification

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

Examples: Gas field development and infrastructure, oil refineries, LNG, Electricity plants.


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 Modelling Approaches 

  • 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: Financing 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: Legal Issues; Bank Finance; Export Credit Agencies; Power Markets



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

Export Finance Techniques (ECAs)

  • 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




Liberalizing Power Markets

  • Market forces and the effect on electrical supply
  • Fragmentation of electricity generation
  • Generating, Transmission, Distribution
  • Merchant Power Plants (MPPs)
  • Rating Agencies' analytical model


Renewable Energy Projects

  • Growth of the market and various types of renewable energy projects
  • Comparing renewable to traditional fossil fuel burning plants
  • Project economics
  • What is driving the investment?
  • Government incentives in various countries


Case Study: Financing a Gas-fired Power Plant
Risk allocation among various project participants to finance and construct a power plant. Testing the project's cash flows under varying scenarios with a cash-flow simulation model. What are acceptable DSCR levels? What returns does equity look for?




DAY 3

Themes: Bank Markets; Development Banks; PPP for Transportation and other Infrastructure Projects

  • Club Loans and Syndicated Loan Financing
  • What security do banks want?
  • Market flex clauses and “Mini-perms”
  • Inter-creditor issues


Roles for Development Banks and Agencies

  • World Bank Group
  • Regional Multilateral development banks (Asian Infrastructure Investment Bank, Asia Development Bank, Africa Development Bank, EBRD, EIB, Inter-American Development Bank, Islamic Development Bank, Others)
  • Bilateral agencies (FMO, DEG, OPIC, Proparco, etc.)


Islamic Structures

  • Murabaha, Istisna, Ijara and Sukuk in Projects
  • Examples: Petro -Rabigh


PPP: Roads, Railroads, Airports, Ports and Other Transportation Projects

  • Public Private Partnerships (PPP) Principles
  • Roles for the Public and Private Sector
  • Different Structures and Degrees of Private Participation
  • Outright and partial government ownership
  • Long-term concessions and DBFO
  • Privatization of seaports; airport financing

Exercise: Constructing a risk matrix

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, as well as rating agency considerations in evaluating the proposed financing structure.


DAY 4

Financing Natural Resources: Oil, Gas and Mining – 1 Day

Themes: Capital Markets; Risk Management with Derivatives, PPP for Water and Other Infrastructure


Using Capital Markets

  • 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
  • Private risk insurers and Mono-lines


Price Volatility and Risk Management with Derivatives in Projects

  • Financial price movements today: volatility and risk
  • Commodity-linked derivatives and securities
  • Using interest rate and currency swaps to manage risk in projects
  • Options: caps, floors and collars


Water Infrastructure

  • Special features of limited recourse projects in water and sanitation
  • Array of structures: Service Agreements Leasing, BOT, Privatization
  • Who are the players? Investors and lenders?
  • Desalination and electricity projects
  • Case examples and PPP transactions


Case Study: Water Treatment facility

Participants will break into groups to prepare a case study concerned with financing a wastewater treatment plant.

Social Infrastructure

  • Financing Hospitals, Schools, Prisons, Others
  • Concessions and Contract Terms
  • Risk Evaluation and Allocation
  • Monitoring Requirements

Self-Test



Day 5

 

Themes: Oil, Gas and Cashflow Modeling

 
Participants will spend a day building a model for an LNG facility. They will assess a wide range of scenarios in order to test a limited-recourse financing package for debt capacity and suitability for investment. With discussion of common approaches to modeling with Excel, “dos’ and ‘don’ts” as well as the practical use models for negotiations.

Modeling Workshop Overview: Objectives and Approaches

  • Constructing a Model / Common Myths
  • Variations by Project Type

Structuring the Model and Organizing the Data to Create a Cashflow Statement

  • Developing the Assumptions Page
  • Construction Costs and Timing
  • Operating Cost, Plant Capacity Usage, Fixed and Variable Costs
  • Reinvestment, Plant Expansion, Productivity Shifts


Developing the Profit and Loss and Balance Sheet

  • Factoring in Reserves
  • Considering Currencies
  • Tax Calculations


Financing Section

  • Equity First or Pro Rata
  • Manually Designed Equity Subscription
  • Draw-down of Debt Linked to Specific Contracts or Expenditures or in a Hierarchy

Ratios and Sensitivity Analysis: Objectives and Limitations

  • Measuring Debt Capacity and Investor Return
  • Using Modeling Output for Initial Project Vetting
  • Supporting on-going Negotiations

Summary and Wrap-up of Modeling Workshop

End 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.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • 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.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product