A tried-and-true method of obtaining capital for big, independent enterprises with lengthy payoffs but high upfront costs is project finance. Since the sponsors of these projects frequently ring-fence their balance sheets from the project’s risks, the financiers receive their payouts from the project’s cash flows. As a result, some asset-specific financial structuring is necessary to reduce risks and ensure that fund providers receive the returns they anticipate. Participants in this accounting training course on project and infrastructure finance will be able to apply what they have learned to real-world challenges and problems and hone their ability to approach the process in an organized and disciplined manner. The delegates will have the chance to gain technical and financial skills that will help them better manage the entire capital budgeting process by identifying issue areas for corrective action.
Objectives and target audience
Objectives
After completing this training course on project and infrastructure finance, learners will know how to:
- Recognize the unique characteristics of the PPP and project finance markets.
- Recognize the essential procedures for organizing an infrastructure project.
- Recognize the various project valuation methodologies and project cash flow models.
- Do a risk assessment and due diligence.
- Creating an appraisal note and conducting a master project evaluation
- The various means of financing large-scale investments
- The economics of public-private partnerships
- Effective Due diligence process
- The framework for structuring a contractual bundle around the project to ensure optimum risk sharing and mitigation
- Project Finance Appraisal, Debt Sculpting & Sizing
Target audience
- Treasurers, Controllers, CFOs, and Project Managers
- Corporate and investment bankers in the field
- Managers of finance who are in charge of raising money for their organizations’ projects
- Government representatives in charge of infrastructure project funding
- Investors who provide capital to special purpose vehicles and even oversee a huge fund’s asset portfolio
How will attendees benefit?
Attending this training course on project and infrastructure finance will help you increase your financial analysis abilities and
- A deeper comprehension of financial modeling
- A greater understanding of project finance structure and its stakeholders
- An understanding of the significance of doing due diligence
- More self-assurance to handle novel circumstances
- The capacity to recognize risk variables and provide worthwhile mitigation strategies
- Various project valuation models and project cash flow models
- The capacity to recognize project risk factors, offer solutions for risk mitigation, and cultivate an understanding of the significance and applicability of due diligence
- Skills for Debt Sizing and Debt Sculpting
- Methods of project appraisal for more informed choices
- appreciation of the infrastructure’s structuring process, Weighting, and the project
Course content
Module 1
Overview of infrastructure and project finance
- Project Definition, Characteristics, Corporate Finance, and Assessment
- Definition, Justification, and Scope of Project and Infrastructure Finance
- Important Project Participants: Contracts, Public-Private Partnerships, Selection, and Finance Agreements/Covenants
- Phases of Infrastructure and Project Finance
- Project Assessment and Viability
Module 2
Organizing the Finances
- Structure of Debt and Equity through an SPV/SPE Equity Finance
- Debt Instruments & Debt Providers
- The price of financing
- Base: Bank Capital Adequacy Requirements & Risk Pricing
- Debt Sculpting & Debt Sizing
Module 3
Evaluating finances and doing due diligence
- Financial Appraisal Stages
- Payback, NPV, and IRR for Capital Investments
- The Modified IRR Capital Rationing Earned Value
- Analysis Issues with IRR MIRR
Module 4
Due diligence risk management strategy
- Project Risk Management
- From Concept to Off-Take/Market Risk to Decommissioning, Risk Identification
- Risk Assessment: Impact
- Probability Risk Management & Due Diligence
- Risk Hedging with Futures, Options, Forwards/FRAs, and Swaps
Module 5
Case study
- Project Management
- Cash Flow Forecast
- Financial & Evaluation
- Risk Identification & Evaluation
- Sensitivity Analysis & Monte Carlo Simulation
- Risk Management