APAC Project Finance Academy: M1 - Advanced Project Finance Workshop
Starting dates and places
DescriptionCourse overview This is Module One of the APAC Project Finance Academy. 'Advanced Project Finance Workshop' is intended for those who have an interest in the risk management and structuring aspects of Project Finance projects. It focuses on the core skills of risk analysis and structuring, with a special emphasis on political risk. Summary of course content Analyse risk characteristics and implement risk-allocation structures Evaluate the key financial sensitivities of a project and identify the main quantitative and qualitative measures Develop due-diligence tricks and avoid traps Discuss important issues such as documentation and major financing agreements in project contracts Through hand…
Frequently asked questions
Advanced Project Finance Day 1 Hot buttons in project finance Best sectors and project types Sectors to avoid Which trends are current? Project finance vs. Balancesheet finance? Sponsor's rationale Lender's criteria Constructor's objectives Government's role(s) Institutions/investors Stages in project finance Time, team, costs Credit approval/information memorandum Syndication Case study and modelling assignments: Tollway - banks/bond 144A power project Oil & gas - political risk Infrastructure complex - bond Credit criteria Credit analysis case study: Impact of leverage Calculations for global coverage ratios Calculate liquidated damages/overrun/retention requirements Credit factors How to choose sensitivities Key ratio targets Contrast to sponsors' IRR, NPV, valuation analysis How to determine the correct structure for each risk The 7 risk systems The 16 risks to identify The 81 structures to apply Operating Cost Technical Management Completion/construction Political Infrastructure Market/revenues Environmental Inputs/reserve Sponsor/participant Force majeure Foreign exchange Engineering/design Syndication Interest/funding Legal Day 2 Funding and documentation Funding sources Debt Local currency Cross-border Mezzanine Credit wraps Equity Preference capital Convertibles IPOs/floats for projects Capital markets Leasing/leveraged leasing Export-credit agencies Multilateral agencies Commodity-based Offtake contracts Derivatives Ratings for project financings How to get one from Moodys, Standard & Poors and Fitch Contractual architecture Concession Agreements/BOO/BOOT Special purpose vehicles (the 6 types) Operations and Management (O&M) contracts Turnkey construction contract Delayed completion and systems performance insurances Offtake/sales contracts Support agreements/direct agreements Indirect supports/comfort letters Government guarantees Funding documentation Loan agreements Joint venture/shareholder agreement Security documentation Assignment of Contracts/Insurances Offshore proceeds account Swaps Securitisation Information memorandum Due diligence How to scope the review Independence of the reviewer Fit to credit approval/compliance The "bankable" feasibility study Role of the advisor(s) When to involve advisors How to keep the costs down Day 3 Political risk and case presentations Political risk structuring Definitions Terrorist questionnaire The classic three - expropriation; war; inconvertibility 21 political-risk categories Export-credit agencies/bilateral agencies and tactics for approaching them KfW-Ipex/Hermes, Germany ECGD, UK EDC, Canada JBIC/NEXI, Japan US Eximbank/OPIC, USA SACE, Italy Sinosure, China EFIC, Australia Multilateral agencies and how to approach them World Bank Multilateral Investment Guarantee Agency (MIGA) International Finance Corp (IFC) Asian Development Bank (ADB) European Bank for Reconstruction & Development (EBRD) Case study: Each team presents its allocated case with structures and solutions as well as cashflow sensitivities. Feedback is given on the team’s presentation of the deal architecture, risks, and financial sensitivities. Project finance as a competitive tool Integrating project financing into the bid Contract/tender bidding "Real" turnkey construction contracts New horizons for projects and funding sources "Green" funds Emerging-market funds Tax structures Performance insurances Infrastructure/development funds Capital markets (wraps, partial risk, credit guarantees) Islamic project finance Credit derivatives Note: The pre-course pack/CD includes the project finance risks chapter and the team cases and cashflow models.