Project Finance
Anne Costin

Objective
Project Finance provides a framework and methodology to look at project financing as a viable financing option from both the debt and equity perspective. Participants will gain “hands-on” experience by applying the principles learned to a number of case studies documenting real projects and spanning a broad cross-section of geography and industry type (transportation, manufacturing, energy), and to a hypothetical project conceived, developed and financed by participant teams.

Key benefits
By attending this program, you will gain an understanding of:

  • Fundamentals of project financing
  • Rationale for use of this type of financing
  • Development phases of a project
  • Debt and equity investment perspective
  • Completion, operational, financial and political/sovereign risks and their allocation in project financing
  • Current financial markets and their pros and cons for project financing: public, private, international and local
  • Rating agency analysis of projects

Who should attend?
Finance professionals, consultants, developers, engineers, lawyers and portfolio managers from both the private and public sectors. Please note that the program is not quantitative and does not include financial modeling instructions.

For financial modeling specific to project finance, refer to AIF's Project Modeling in Excel program.

Accreditation
Amsterdam Institute of Finance is registered with CFA Institute as an Approved Provider of continuing education programs. This program is eligible for 24 CE credit hours as granted by CFA Institute. If you are a CFA Institute member, CE credit for your attendance at this event will be automatically recorded in your CE Diary.

Faculty
Anne K. Costin had a 29 year career at Citigroup, most recently as Managing Director and Global Deputy Head of Project & Structured Trade Finance. From 2004 through 2007, Anne Costin taught Project Financing at Columbia University Graduate School of Business. She is a director of two NYSE listed closed end investment companies with combined investments of $3 billion.

For information about admission, please see our Practical Information.

Program Content
Day 1

Morning

Overview of Project Financing

  • What is project finance?
  • Corporate vs. project financing
  • Why companies use project financing to finance capital investments
  • Types of project financing
  • Project finance risks
  • General overview of sources of project finance funding
    • Syndicated bank loans
    • Bonds
    • Institutional Loans ("Term B Loans")
    • Official Agencies
    • Local Financing
    • Financial Sponsors

Afternoon

Analysis and Mitigation of Sovereign Risk in Emerging Markets for Projects

Review of an IFC Analysis of a Project

Case study: Mozal Project (Mozambique)
$1.4 billion IFC financing for aluminum smelter in Mozambique. Because the total investment was the same size as Mozambique's GDP, and Mozambique had recently emerged from a 20-year civil war, no commercial bank financing was available without the IFC. At the time, this was the IFC's largest investment in the world.

Day 2

Morning

Introduction to Framework of Risk Analysis and Allocation – The Hallmark of Project Financing

Case study: A-2 Motorway Project (Poland)
Poland's first private toll road developed and built by a consortium of 18 firms. The case content is centered on identification, assessment, and mitigation of project risks.

Afternoon

Qualitative Assessment of a Project

    • Economic rational for using project financing
    • Identification and allocation of risks
Case study: Petrozuata (Venezuela) – Part I
$2.5 billion oil-field development project in Venezuela, co-sponsored by Conoco and Venezuela's national oil company; an example of a project financing which sought capital markets debt.

Day 3

Morning

Financing a Project in the Bond Markets

    • Attempting to have the rating pierce the sovereign ceiling of the host country

Review of Standard & Poor's current Project Finance Debt Rating Criteria

    • How Petrozuata would be analyzed against these criteria

Case study: Petrozuata (Venezuela) – Part II
Focus of this second session is financing a project in the bond markets and attempting to have the rating pierce the sovereign ceiling of the host country.

Afternoon

Equity Perspectives on Project Finance
Guest Speaker: Fernando F. Salek, Vice President Corporate Finance, BHP Billiton Finance B.V.

Day 4

Morning

The Complexity of Negotiating Mega Deals between Public and Private Entities

Conflicts of Projects Benefiting Undeveloped Countries but with Resultant Impacts on
Environment and Indigenous People

Legal Issues in Project Finance
Guest Speaker: Anthony Giustini, Partner, Clifford Chance LLP (Paris); co-head of Clifford Chance's Worldwide Project Group and founder and co-head of the firm's Africa Group.

Case study: Chad Cameroon Petroleum Development and Pipeline Project (Chad and Cameroon)
$4 billion pipeline project largely financed by World Bank/IFC as a means of alleviating poverty in Chad.

Afternoon

Fundamentals of Project Finance Contracts
Final Project


Dates & Fees
October 12 - 15, 2010
€ 4,100
 
(AIF programs are not subject to VAT)