Course description
Project Finance Mechanics
This 4-day course will give attendees a practical understanding of how to apply project finance techniques successfully to projects with a particular emphasis on risk analysis and management. The course is structured into interactive sessions covering all the tools of project finance.
The course will begin with introductory comments about the skills and general objectives in project finance analysis with an emphasis on the difficulty in measuring and valuing risk. Financial statement analysis of project finance transactions will also be covered, as well as valuation and credit analysis. Participants will construct a basic project finance model to become familiar with the structure, equity cash flow and free cash flow.
In addition, attendees will explore and discuss modelling mistakes, model layout and best practice spreadsheet conventions as a prelude to hands-on work on a comprehensive model. Finally, the programme will address covenants and risk analysis, and mitigation in project finance.
Outcome / Qualification etc.
This in-depth course is designed to provide Participants with a thorough and working understanding of:
- Project finance transaction structure
- Financial statement analysis
- Valuation of project finance
- Probability of default and loss given default and credit analysis in project finance
- Basic mechanics of project finance models
- Interest during construction
- Use of project finance model
- Risk and analytical failures
- Market risk and contract risk in project finance
- Best practices for excel modelling
- Covenants in project finance, and
- An overview of project finance terms
Training Course Content
Day 1
- Introduction to project finance
- Overview of project finance terms/project finance versus corporate finance
- Industry sectors and different risks in project finance
- Case study risk identification and general terms in a project finance transaction
Day 2
- Technical mechanics of project finance
- General contract structure in project finance using case study
- Analysis of debt sizing, debt structuring and returns in project finance
Day 3
- Understanding project finance models and financial statements
- Objectives of project finance models
- Mechanics of project finance models
- Avoiding bad practices in modelling
- Technical issues after construction
- Project finance valuation with models
- Reading and interpreting models
- Computation of equity IRR
Day 4
- Risk analysis in project finance
- Evaluation of project finance statements
- Analysis from sponsor perspective
- Risk and credit analysis in project finance
- Case study of risk and return
Day 5
- Re-financing, covenants and risk mitigation in project finance
- Re-financing in project finance
- Measurement of risk and return
- Debt service reserve accounting and modelling
- Covenants in project finance
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Reviews
Average rating 4.5
Excellent and insightful.
Very good program that helped to improve my understanding of many subjects in project finance.
Expenses
Course fee: £4495+VAT
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Euromoney Learning
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