Fundamentals of Project Public Course
Finance Level: Intermediate
Duration: 2 Days
CPD points: 16
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 that they
can apply the techniques of Project Finance. Instructors
Our instructors are experienced
Key Learning Outcomes professionals and will provide
you with easily digestible
content, using knowledge
• Apply a structured and systematic approach to financing projects using some of learned from many years in the
the techniques of Project Finance industry.
• Recognize the key characteristics of a robust project and identify the weakest
links in the transaction Case studies
• Use qualitative and quantitative tools and measures to distinguish the key risks You will work through current,
• Interpret each of the key risks to determine their severity and potential impact on region specific case studies
the transaction structure taken from real companies so
• Appreciate how the mechanisms in the transaction documents operate to you can apply what you are being
protect the creditors and evaluate the protection provided taught as soon as you get back
to the office.
• 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
It has been assumed that participants will have limited practical knowledge of participants. The discursive style
Project Finance but participants should already have a sound knowledge of of training helps you develop
financial analysis, the key features of banking products and commercial aspects of confidence in your future
banking documentation. It will also be assumed that participants are familiar with decisions and analysis.
investment appraisal techniques such as IRR and NPV. An understanding of the
basic principles of company valuation will be helpful. CPD recognized
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 and political and regulatory risks: Role of
Introduction governments and related sovereign and regulatory risks
• Key characteristics of Project Finance and factors • Macro-economic risks and understanding their impact on
influencing the choice of Project Finance vs other debt project risks
financing options • Industry risks
• Intensive overview of a transaction to illustrate key aspects • Social-environment exposures
of a Project Finance • Event Risk and force majeure and potential impact on
Ownership of the Project Entity and Sponsors project viability
• Illustration case study: Evaluation of key macro risks for
• Characteristics of strong sponsors
a case study project
• Ownership structure and relationship with key parties to
the transaction Completion Risk
• Operational and financial resources; strategic importance •C ontractors: Attributes of strong contractors
• Segregating cash flows and de-linking from related parties • Cost structure: Contracts, budgets and allocation of costs
Project Investment Criteria • Delay risk and contract terms: Capacity to accommodate
delays and transferring risk
•M easures used by Investors: Payback period, Net Present
• Case study: Evaluation of counterparty risk for a
Value (NPV), Internal Rate of Return (IRR)
contractor
• Measures used by Lenders: Leverage, Debt service, Loan
Life, Project Life Cover Ratios and economic rationale Operational Risk
• Cost to the user: Value for Money and Affordability •O perator: Risk related to the operator including
performance, reputation, and financial position
Jurisdiction, Legal and Expert Reports
• Supply risk: Quality and price of resources and products
• I ssues to consider: Legal framework, licenses, regulation, required for operation
legislation etc.
• Technology risk: Obsolescence/Economic Life
• Project contracts
• Costs: make-up, timing and potential volatility of operating
• External technical reports: Clarity, transparency and costs
timeliness
• Revenue risk: Demand and underlying stability of
• Illustration case study: Appraisal of project structure for projected cashflows
a case study project
• Early termination risk: Events which may lead to
Assessing the Risks termination of concessions and operating licences and
• I dentification and evaluation of the main types of project lenders’ step-in rights
risks • Counterparty risks: risks relating to key parties to a project
• Discussion of risks in selected transactions in different • Case study: Evaluation of operational risks for a case
business sectors to illustrate some lessons of experience study project
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
DAY TWO Final Group Case Study and Presentation(s)
Application of all the aspects of Project Finance assessment
Debt Service, Capital Structure and Counterparty as addressed during the workshop to an overview of a
Risk separate case study. The review of the case study will cover
the following areas:
• Evaluating the underlying operational and financing
assumptions • Project structure and parties
• Assessing the capital structure of the project entity and • Project risks
interest and currency exposures • Proposed debt structure
• Funding providers and types of funding and potential • Project debt service capability using cash flow forecasts
impact on credit risk • Counterparty risks
• Debt profile: Amount, term, amortization schedule,
Conclusion
currency and interest rate mechanisms
• 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
• Illustration case study: Debt service capability using cash
flow forecasts and assessment of counterparty risks
Debt Structure - Documentation
Assess the appropriateness of the capital structure and
features of the debt structure
• Security and credit rights
• Payment waterfall
• Collateral and assignment of contract rights
• Rights of the controlling classes, inter-creditor issues
• Structural features
• Debt service covenants
• Reserve accounts, cash sweeps, profit distribution controls
• Refinancing risk
• Case study: Suggested debt structure and term sheet for
a case study project
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.
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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
