This course forms module 2 of the Fundamentals of Infrastructure Finance & PPP Training Week.
This three day module will provide participants with an enhanced understanding of the financing and structuring of infrastructure transactions.
This three day module will provide participants with an enhanced understanding of the financing and structuring of infrastructure transactions, focusing on:
- Options for public sector users
- The impact of the credit crisis
- Objectives of the parties involved both from a public and private sector perspective
- Risk and return requirements
- Key financial sensitivities
- Debt finance and implications of the credit crisis
- The role of infrastructure funds
- Factors influencing the choice of corporate or project finance
- Capital structuring decisions
- Valuation issues for infrastructure projects and companies
- Some critical aspects of debt financing documentation
The financing of infrastructure represents a major opportunity and challenge, given the scale of potential infrastructure development as a result of:
- Ageing infrastructure in many developed economies
- Need for infrastructure in many developing economies to support economic growth
- Attempts by governments and supranational agencies to mitigate the impact of the credit crisis by accelerating spending on infrastructure projects
Traditional methods of financing infrastructure projects are no longer sufficient to finance Infrastructure projects, leading to increased use of Public Private Partnerships, and development of Infrastructure Funds as potential sources of funds. There has also been a change in approach in recent years about ‘risk sharing’, ‘accountability’ and ‘value for money’ resulting in changes in how services for how services to public sector users are procured and performance evaluated.
This module will provide participants with a sound understanding of the key issues in infrastructure finance so that they can develop a clear understanding of the factors influencing the choice of financing methods for infrastructure projects; the motivations of the parties involved; risk evaluation and allocation; capital structuring issues; and lessons from the past.
Who should attend?
This training programme will be relevant to personnel involved in the financing and/or financial evaluation of Infrastructure projects that are looking to obtain an intensive overview of key issues relating to the financing of large scale Infrastructure projects including personnel working for:
- Governments and Public Sector Agencies
- Equity investors, including Private Equity firms and Infrastructure Funds
- Project Sponsors
- Commercial Banks
- Development Finance Institutions
- Export Credit Agencies
- Consultancy firms
Participants should already be familiar with the fundamental principles of business risk analysis and investment appraisal techniques, key aspects of company valuation, the core functions of Microsoft Excel, and the key features of the principal financial instruments.
Limited practical experience of debt financing instruments in the context of an Infrastructure Finance will be assumed.
Case studies from both developed and developing economies will be the main focus of the teaching methodology with examples primarily based on the major areas of public Infrastructure, such as:
- Ports and airports
- Transmission lines (power and energy)
- Metro systems
- Social infrastructure (health and education)
Case studies will also include review of key issues relating to the evaluation of project investors involved in Infrastructure projects.