Fundamentals of Project Public Course
Finance Level: Intermediate
Duration: 2 Days
CPD points: 14
Overview Why Choose
The goal of this course is to equip participants with an overview of Project Finance Fitch Learning?
by taking them through all stages of a Project Finance transaction, so they can
apply the techniques. Instructors
Our instructors are experienced
Key Learning Outcomes professionals and will provide
you with easily digestible
content, using knowledge
• Review of the characteristics of a Project Finance vs other debt financing options learned from many years in the
• Apply a structured and systematic approach to financing projects using some of industry.
the techniques of Project Finance
• Recognize the key characteristics of a robust project and identify the weakest Case studies
links in the transaction You will work through current,
• Use qualitative and quantitative tools and measures to distinguish the key risks region specific case studies
• Interpret each of the key risks to determine their severity and potential impact on taken from real companies so
the transaction structure you can apply what you are being
taught as soon as you get back
• Appreciate how the mechanisms in the transaction documents operate to
to the office.
protect the creditors and evaluate the protection provided
• Build a credit rationale in order to make and substantiate financing decisions Interactive
Who Should Attend All of our courses are highly
interactive with no more than 16
participants. The discursive style
It has been assumed that participants will have limited practical knowledge of of training helps you develop
Project Finance, but participants should already have a sound knowledge of confidence in your future
financial analysis, the key features of banking products and commercial aspects of decisions and analysis.
banking documentation. It will also be assumed that participants are familiar with
investment appraisal techniques such as IRR and NPV. An understanding of the CPD recognized
basic principles of company valuation will be helpful.
We are a corporate member of
CPD and all our courses are CPD
recognized. Eight CPD points are
rewarded per course day.
CONTACT US:
Europe: Tel. +44 (0) 20 7496 8401 US: Tel. +1 888 203 1804 Asia: Tel. +65 6327 1581 Dubai: Tel. +971 800 72489
Email: [email protected] Web: fitchlearning.com
Course Content
DAY ONE Macro Risks
•C ountry, political and regulatory risks: Role of
Introduction governments and related sovereign risks
• Key characteristics of Project Finance and factors • Macroeconomic risks and understanding their impact on
influencing the choice of Project Finance vs. other debt project risks
financing options • Industry risks
• The principal sectors for Project Finance transactions • Social-environmental exposures
• Project Finance vs the financing of projects • Event Risk and force majeure and potential impact on
• Intensive overview of a transaction to illustrate key aspects project viability
of Project Finance and the key parties involved Completion Risk
Ownership and Sponsors •C ontractors: Attributes of strong contractors
• Characteristics of strong sponsors • Cost structure: Contracts, budgets and allocation of costs
• Ownership structure and relationship with key parties to • Delay risk and contract terms: Capacity to accommodate
the transaction delays and transferring risk
• Operational and financial resources; strategic importance • Technology risk: factors which increase technological risk
• Segregating cash flows and de-linking from related parties Operational Risk
Project Investment Criteria •R evenue risk/Off -take: How reliable is the revenue
•M easures used by investors: Payback period, Net Present stream? Demand risk arising from multiple payers
Value (NPV), Internal Rate of Return (IRR) • Supply risk: Quality and price of resources and products
• Measures used by lenders: Leverage, debt service, loan life, required for operation
project life cover ratios and economic rationale • Operator: uncovering risk related to the operator including
• Cost to the user: Value for money and affordability performance, reputation and financial position
• Non financial objectives such as environmental and social • Technology risk: exposure to technological change
impact • Costs: Makeup, timing and potential volatility of operating
costs
Jurisdiction, Legal and Expert Reports
• Early termination risk: Events which may lead to
• I ssues to consider: Legal framework, licenses, regulation, termination pre-maturity and lenders’ step-in rights.
legislation, etc. Principles in dealing with compensation for debt and
• Project contracts equity providers in the event of termination of project
• External technical reports: Clarity, transparency and concessions
timeliness • Counterparty risks: Risks relating to key parties to a project
Assessing the Risks
•O verview of the key risk categories in a Project Finance
structure and typical mitigants
• Discussion of risks in selected transactions and in different DAY TWO
business sectors to illustrate some lessons of experience
Debt Perspective
• Evaluating the underlying operational and financing
assumptions
Copyright Notice: The copyright and all other intellectual property rights in these materials are, and shall continue to be, owned by Fitch Learning or its affiliates or licensors, as applicable, whether adapted, written for
or customised for the recipient. These materials may not be reproduced or used, in whole or in part, for any purpose other than the training provided and may not be furnished to any persons or companies other than
those to whom copies have been made available by Fitch Learning. This notice shall apply in respect of all materials provided by Fitch Learning in relation to any training provided by Fitch Learning. This notice may
not be removed from these materials or any other such materials.
CONTACT US:
Europe: Tel. +44 (0) 20 7496 8401 US: Tel. +1 888 203 1804 Asia: Tel. +65 6327 1581 Dubai: Tel. +971 800 72489
Email: [email protected] Web: fitchlearning.com
•A ssessing the capital structure of the project entity and • Reserve accounts, cash sweeps, profit distribution controls
interest and currency exposures • Refinancing risk
• Funding providers and types of funding
• Debt profile: Amount, term, amortization schedule,
currency and interest rate exposures
• Determining the project’s capacity to generate stable cash
flow to service the debt levels – base case and appropriate
stressed sensitivities
• Assessing the project debt service capability using DSCR
(Debt Service Cover Ratio), LLCR (Loan Life Cover Ratio),
PLCR (Project Life Cover Ratio)
• Counterparty risks: Creditworthiness and structural
features to mitigate risk, and potential use of credit
enhancement
Project Finance - Equity Providers’ Perspective
• Types of equity investors and their approach
• Risk and return; cost of capital and valuation issues
• Understanding the equity investor’s approach to achieving
returns from the project company, including operating
relationships with the project company, and cash
extraction through re – financing
The project financial statements and review of key
assumptions
• Are the assumptions realistic?
• Key elements in the structure of Project Finance
spreadsheets
• The principal financial measures to assess potential
financial viability – DSCR, LLCR, PLCR, IRR, NPV, Cost to the
User and Value for Money
• Lessons from the past – what can be learned from past
transactions about the value of forecasts and feasibility
studies?
Debt Structure – Documentation
About Financial Training Scheme (FTS)
Assess the appropriateness of the capital structure and This course is recognised under the Financial Training Scheme (FTS) and is
eligible for FTS claims subject to all eligibility criteria being met.
features of the debt structure
• Security and creditor rights Please note that in no way does this represent an endorsement of the quality
of the training provider and course. Participants are advised to assess the
• Payment waterfall suitability of the course and its relevance to his/her business activities or job
• Collateral and assignment of contract rights roles.
• Rights of the controlling classes, inter-creditor issues The FTS is available to eligible entities based on the prevalent funding
eligibility, quantum and caps. FTS provides 70% course fee subsidy support
• Structural features
for direct training costs subject to a cap of S$500 per candidate per course
• Debt service covenants subject to all eligibility criteria being met.
Find out more on www.ibf.org.sg
Copyright Notice: The copyright and all other intellectual property rights in these materials are, and shall continue to be, owned by Fitch Learning or its affiliates or licensors, as applicable, whether adapted, written for
or customised for the recipient. These materials may not be reproduced or used, in whole or in part, for any purpose other than the training provided and may not be furnished to any persons or companies other than
those to whom copies have been made available by Fitch Learning. This notice shall apply in respect of all materials provided by Fitch Learning in relation to any training provided by Fitch Learning. This notice may
not be removed from these materials or any other such materials.
CONTACT US:
Europe: Tel. +44 (0) 20 7496 8401 US: Tel. +1 888 203 1804 Asia: Tel. +65 6327 1581 Dubai: Tel. +971 800 72489
Email: [email protected] Web: fitchlearning.com
Registration Form
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Terms and Conditions Summary
Cancellations and transfers can be made free of charge with 30+ days written notice. Notification must be made in writing and receipt must
be acknowledged by Fitch Learning. Participants who do not attend or give less than 30 days’ notice of cancellation are liable for the full
course fee and no refunds can be given. A substitute can be sent at no additional charge but we will require notice 2 working days before
the course. Should a participant wish to attend the next course date, providing the course fee has been paid in full, we will only invoice for
25% of that course fee. Only one transfer can be made in respect of any booking.
Invoice and Payment:
Invoice will be sent, via email, to the billing contact within 3 working days of receiving the completed registration form. We require payment
within 30 days or before course attendance, whichever is sooner. To discuss payment with a member of the Accounts team please call + 44
(0)845 072 7620.
I accept the above terms and conditions of the registration.
Signed: Date:
CONTACT US:
Europe: Tel. +44 (0) 20 7496 8401 US: Tel. +1 888 203 1804 Asia: Tel. +65 6327 1581 Dubai: Tel. +971 800 72489
Email: [email protected] Web: fitchlearning.com
