Project and Infrastructure Financing
The course focuses on how private investors approach infrastructure projects from standpoint of equity, debt and hybrid instruments. It concentrates on the practical aspects of project financing and the most frequently used techniques for infrastructure investments.
About The Instructor
An OECD estimate of capital that will be committed towards global infrastructure development by 2030 for transport, power, water and telecommunications is close to 71 trillion USD; which is about 3.5% of the annual world GDP from 2007 to 2030. Traditionally, infrastructure investments have been publicly funded but severe budget constraints and inefficient management by public entities have led to an increased private participation. The course focuses on how private investors approach infrastructure projects from standpoint of equity, debt and hybrid instruments. It concentrates on the practical aspects of project financing and the most frequently used techniques for infrastructure investments. The course drives these through use of real life examples and case studies to allow participants to link theoretical background to actual business practice. At the end one should be able to analyze a complex transaction, identify key elements of the deal and suggest proper solutions for deal structuring from the perspective of a financial adviser.
After the completion of ' Project and Infrastructure Financing' at Edureka, you should be able to understand the following:
1. Introduction to Project and Infrastructure finance. Knowing the vocabulary of project finance.
2. The Syndication Process.
3. Risk analysis and allocation from the perspective of a private investor.
4. Capital budgeting for infrastructure investment.
5. Assessing financial sustainability of an infrastructure project.
6. Recent evolution in the infrastructure finance market.
Who should go for this Course?
Finance students, professionals wanting to get into project financing jobs, young bankers, aspiring investment advisors, job seekers, entrepreneurs and people keen on understanding the challenges in funding infrastructure projects and their components.
Why learn Project and Infrastructure Financing?
If you really want to learn how to structure the financing package for an infrastructure project or determine if an infrastructure investment is attractive for a private investor, this is definitely the course for you.
What are the pre-requisites for this Course?
No particular background in finance is required, although a basic knowledge of principles of corporate finance is recommended.
Which Case-Studies will be a part of the Course?
Project 1: Construction and running of a biomass plant to be annexed to an existing distilleries factory.
A. Understanding the contractual network.
B. Cash Flows
C. Incentives at work: Multiple roles.
At the end of your course, you will work on a real time Project. You will receive a Problem Statement along with a dataset to work.
Once you are successfully through with the project (reviewed by an expert), you will be awarded a certificate with a performance based grading.
If your project is not approved in 1st attempt, you can take additional assistance to understand the concepts better and reattempt the Project free of cost.
We partnered with Edureka. We provide up to 35% discount from the actual course fee.
Yes, the access to the course material will be available for lifetime once you have enrolled into the course.
Learning Objectives - This module provides an instruction to the world of project financing. A typical project comprises of a network of contracts which cover execution in each phase of the project. The contracts are explained along with the key driver such that as an advisor one is aware of who does what and when?
Topics - The Contractual Network, Project Finance vs. Corporate Finance, Financial Contracts (Equity contribution agreement), Financial Contracts (Loan / Bond covenants), Industrial Contracts
2. The Syndication Process
Learning Objectives - This module introduces the use of bank syndication as a vehicle to fund most infrastructure projects. It establishes the roles and responsibilities of each bank in the syndicate and shows the split of fee between the mandated lead arranger vs. other banks. Finally it shows how the 2008 economic crisis changed the dynamics of this mode of financing.
Topic - Definition of a syndicate, Role of banks, Syndication strategies and how they are used, How much does the customer pay, The crisis and how it reshaped the market
3. Risk Analysis and Risk Allocation
Learning Objectives - This module covers the concept of project finance as a bulk of risk. A project is broken into two phases with each phase having typical risks associated with them. The contractual network helps definition of each phase. The outcome is a risk matrix which shows which party bears the risk and why?
Topics - Need for risk management, Mapping risk: Risk taxonomy, Pre completion risk: Technology and construction, Post completion risk: Supply risk, operational and performance risk, demand risk, Risks found in both phases, Risk matrix
4. Capital Budgeting
Learning Objectives -This module shows the basic analysis of cash flows, construction phase and how this bulk of money will be financed, operational phase and how much cash will be generated.
Topics - Features of an infrastructure project, Setting up the construction phase budget, Financing construction: Equity contribution, base facility, VAT facility, stand by facility and working capital facility, Setting up the budget of the operational phase.
5. Financial Sustainability of an Infrastructure Project
Learning Objectives - Investors assess projects in terms of profitability which is measured through specific IRRs. Assessing creditor profitability along with financial stability is essential. The module covers measures like DSCR; point measures and LLCR; summary measures.
Topics - Profitability for shareholders, Profitability for creditors, From profitability to Financial stability, Cover Ratios and their calculation
6. Technical Aspects of Loan Agreements
Learning Objectives - This module describes composition of a security package; emphasizing the cash based nature of a deal. It explains covenants: positive, negative and financial along with materiality test. Finally it concludes with loan amortization and its tailoring.
Topics - Security package for project lenders, Covenants of Credit Agreement, Loan Amortization, Amortization methods and applicability
There will be 6 instructor-led interactive online classes during the course. Each class will be of approximately 2 hours and will happen at the scheduled time of the batch you choose. You have the flexibility to reschedule your class in a different batch if you miss any class. Class recordings will be uploaded in the LMS after the class. The access to class recordings is lifetime.
Each class will be followed by practical assignments which can be completed before the next class. These assignments will help in applying the concepts taught in the Live classes. Our 24x7 expert support team is available to help you through Email, phone or Live support for any issues you may face during the Lab Hours.
Towards the end of the course, you will be working on a project where you are expected to implement the techniques learnt during the course to visualize and analyze data.
You get lifetime access to the Learning Management System (LMS). All the class recordings, installation guides, class presentations, sample codes, project documents are available in downloadable format in the LMS. Also, your login will never get expired.
Towards the end of the course, you will be working on a project. Edureka certifies you as a Project and Infrastructure Financing based on the project reviewed by our expert panel. Anyone certified by Edureka will need to demonstrate practical expertise in Project and Infrastructure Financing.