The purpose of this seminar is to give you a good and practical understanding of "project finance" as a financing tool.
We start with a general introduction to project finance. We explain the recent developments of project finance, its key characteristics and how these differ from other types of finance, and why project finance is used. We give an overview of project finance markets and we explain the roles of the main participants and financing sources: commercial banks, bond investors, mezzanine and vendor finance etc.
We then look at how sponsors and the project company develop projects and the competitive bidding procedures for project development. We also explain procedures for raising financing for private sector lenders, and we review the main project agreement and other important project contracts such as the Offtake Contract and Concession Agreement.
Further, we explain how the financing structure for a project is created and maintained. We describe the inputs used for a financial model of a project and we explain how the model's results are used by investors and lenders. We also explain how the process of review and risk analysis concludes in a negotiation of the project's finance structure and terms.
Finally, we present and discuss the various types of risks involved in project finance: commercial risks, financial risks, and political risks. We also explain techniques for mitigating these risks, including government guarantees and private sector insurance.
The techniques and principles taught at this seminar will be illustrated using practical case studies.