Project Finance

Chapter 1 Principles and Application of Project Finance * Origins and History of Project Finance * Why Sponsors use Project Finance * Project Finance - Asset Class Performance * Global Infrastructure Outlook * The Infrastructure Gap in Emerging Markets * Focus - Asia Infrastructure Needs Chapter 2 Project Finance - Risk Analysis & Mitigation * Commercial versus Contract Viability * Sponsor R`isk * Political Risk * Construction & Completion Risk * Operation & Maintenance Risk * Supply Risks * Reserve Risk * Sales / Offtake Risk * Approvals and Permits * Social & Environmental Considerations * Financial Risks * Force Majeure Risk * Regulatory & Change in Law Risk Case Study - Mozal Aluminum Project, Mozambique Case study learning objectives: * Apply Project Risk Analysis, Mitigation and Allocation Learnings * Structure Matters - Application of Effective Structural Risk Mitigation * The Paradox of Infrastructure Investment and Finance - Higher Risk requires higher returns which expose lenders and Project to adverse sovereign actions Chapter 3 Project Finance Agreements and Loan Documentation * Construction Contracts in Project Finance * Operations & Maintenance Contracts in Project Finance * Offtake Contracts/Concession Agreements * Supply Contracts * Project Finance Loan Documentation * Common Terms Agreement * Account Agreement & the Cash flow "Waterfall" * Direct Agreements * Covenants and Security package * Key Lender Protection Mechanisms & Strategies for Negotiating Finance Agreements Case Study - Samba Drillship Oil & Gas Project, Brazil Case Study Learning Objectives: * How Project Finance Lender Security Rights and Protections Work * Challenges and Issues Enforcing Lender Security Rights * How Lenders Successfully Exercise Step-in Rights * Ring-fencing Projects from Bankruptcy Actions Chapter 4 Risks and Challenges of Project Financing in Emerging Markets * Track Record of Project Financing in Emerging Markets - The Asian IPP Experience * Currency Mismatch - Lessons Learned from the Asian Currency Crisis * How the Asian Currency Crisis Transformed the Approach to Project Finance * Role of Multilateral, Bilateral Development Banks and Export Credit Agencies * Stakeholder Alignment Issues * Mitigating Political and Sovereign Risks * Local Community Benefits and Social Infrastructure Case Study - Dabhol Power Project, India Case Study Learning Objectives: * Why Projects in Emerging Markets Fail * Importance of Stakeholder Alignment and Balanced Risk Adjusted Returns * Market Entry Strategies for Emerging Markets Chapter 5 Sources of Financing for Emerging Markets * Multilateral Development Banks * Bilateral Development Banks * Export Credit Agencies * Commercial Banks * Political Risk Insurance Market - Breach of Contract and Non-Honoring of Financial Guarantees * Project Bonds * Equipment Suppliers and Financing * Institutional Lenders (insurance companies, infrastructure funds, pension funds, private equity etc.) * Strategies for Multi-Sourced Financing in Emerging Markets Case Study - Nam Theun 2 Hydro Project, Laos Case study learning objectives: * Project Finance Structuring to Achieve Multi-Source Financing * Effective Documentation and Contract Structure * How to Address Cross Border/Cross Currency Risks * How to Achieve Efficient Financial Execution Chapter 6 Financial Structuring and Debt Sizing * The Borrower/Sponsor Objectives * Lenders Objectives * Debt Sizing & Sculpting * Financial Structuring - Debt Sizing and Loan Amortization * Lender Ratios for Debt Calibration & Stress Testing * Cash Traps and Sweeps Case Study - Sabine Pass LNG Project & USA-Asia Energy Flows Case Study Learning Objectives: * Application of Mini-Perm Financing * Project Finance Structuring to Optimize Bank and Bond Financing * Cross Border Energy Trade Flows between US and Asia Chapter 7 Environmental Social and Governance (ESG) * Sustainable Infrastructure Finance and Investing * Equator Principles * Multilateral Development Banks ESG frameworks * IFC Impact Investing Principles * Green Bonds * Sustainability Project Financing and UN Social Development Goals * How to Unlock ESG Institutional Capital Case Study - Manzanillo Container Port Terminal Project, Mexico Case study learning objectives: * Understanding and Analyzing Market Risk in Project Deals * Role of Multilateral Development Banks Managing Environmental and Social Issues * Assessing and Mitigating Social and Environmental Risks Chapter 8 Emerging Markets Project Finance Bonds & Local Capital Markets * Project Bonds Versus Project Loans * Project Bonds Investor Base & Market Liquidity * Local Currency Project Bonds & Partial Credit Guarantees/Insurance Wraps * Recent Project Bond Case Study in Emerging Markets Case Study - Mong Duong 2 Power Project, Vietnam Case study learning objectives: * Example of Asia frontier market power project capital markets bond refinancing * Project finance structuring requirements for bond investor refinancing * Terms and conditions for emerging markets bond deal Chapter 9 China's Belt and Road Initiative * Background and Scope of the Belt and Road Initiative * Belt and Road Initiative Infrastructure Needs - Spotlight on the China-Pakistan Economic Corridor * China's Financing Strategy for BRI Infrastructure Development * Emergence of New Multilateral Developments Banks - Focus on Asia Infrastructure Investment Bank Chapter 10 Project Finance Market Developments and Finance Structures * Mini-Perm Financing Structures * Back-Levered Financings for Renewable Energy Projects * Infrastructure Guarantee Products - Bond and Private Capital Credit Enhancement