Project Finance

Objective
The Project Finance training course 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 case studies documenting real projects and spanning a cross-section of geography and industry type, 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

Day 1
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
• Official agencies
• Local financing
• Financial sponsors

Analysis and Mitigation of Sovereign Risk in Emerging Markets for Projects

Review of an IFC Analysis of a Project (as example of a multilateral insititution)

Case study: Financing the Mozal Project (Mozambique)
$1.4 billion IFC financing for aluminum smelter in Mozambique.
At the time, this was IFC's largest investment in the world. Focus is on analysis and mitigation of sovereign risk in emerging markets for projects and review of IFC’s analysis of a project.

Day 2
Financing a Project in the Bond Markets

Review of Standard & Poor's current Project Finance Debt Rating Criteria and how Petrozuata would be analyzed against these criteria

Case study: PetroleraZuata, Petrozuata C.A. (Venezuela)
$2.5 billion oil-field development project in Venezuela, co-sponsored by Conoco and Venezuela's national oil company. Example of a project financing which sought capital markets debt.

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.  Case content is centered on identification, assessment, and mitigation of project risks.

Day 3
Final Project: Participants, working in groups, conceive, develop and present hypothetical projects

Equity Perspectives on Project Finance
with Guest Speaker:  Name to be advised

Day 4
Legal Aspects of Project Finance
with Guest Speaker: Gilbert D. Porter, Haynes and Boone, LLP

The Project Finance training course is recommended for 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.

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.

"Anne is very experienced and gave a practical touch beyond the academic approach."
Senior Manager, Corporate Finance
BHP Billiton, The Netherlands

“Excellent practical knowledge on project finance which was highly valuable.”
Financial Controller
Mubadala Development Company, United Arab Emirates

"A good balance between theory and practice with a diversified mix of case studies across different scales and regions. The course gives you a good overview of what project finance is about."
Manager,
Structured Finance/Telecom & Media/Wireless
ING Bank, The Netherlands

"I learned a lot. It's good to be taught by someone with a lot of practical experience (instead of only theoretical).
Senior Legal Counsel
Nuon
The Netherlands