Project and Infrastructure Finance
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Project finance transactions have different risk profiles than financings for corporations, public finance or structured finance, requiring analysts to have specialized skills.
These skills are needed to assess the growing number of infrastructure and energy investments, globally.
The private sector is expected to fill an increasing portion of the enormous funding gap.
Success requires credit professionals who can apply these skills with a high level of competence, confidence and creativity.
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By the end of this course, you will be able to:
assess project finance credit risk where the primary source of repayment are cash flows from a specific project
identify and assess a comprehensive range of risks in each transaction
evaluate how each risk is mitigated or not mitigated through the project’s contracts
review cash flow modeling techniques, and loan documentation
learn to assign a risk score.
The course covers privately owned infrastructure, energy and industrial projects, and public private partnerships.
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Credit analysts, asset managers, and capital market lenders that have started analyzing project finance credits or expect to do so soon.
Project participants including sponsors, equity investors, contractors, public sector officials and consultants that need to assess the options for structuring projects and financings and the risk profiles associated with each option.
The course is targeted to junior/onboarding professionals.
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We adjust to your needs. The “sweet spot” is 3 days, providing enough time for all topics and practice team through case studies and credit committees. We can condense or extend the program, but we always dedicate time for practice as it remains the best way to learn. Class sizes are limited to 20 analysts.
Below is an illustration for a 3-day program.
Pre-course: Online introduction to credit risk
The 5 modules and the short test require 4 – 6 hours of work depending on participants’ familiarity with the topic. The 5 modules include:
Dimensions of credit risk
Measurements of credit risk
Cycles, bubbles and crises
Funding sources and the capital structure
Credit rating agencies and credit ratings
In the classroom
Day 1
9:00 - 9:30
Introductions and Learning Objectives
9:30 - 10:30
Overview of Infrastructure and Project Finance
10:30 - 12:30
Contractual Foundation
12:30 - 1:30
Lunch
1:30 - 3:30
Technology Construction and Operations
3:30 - 5:00
Set up Case Study on Toll Road Project - Phase 1
Day 2
9:00 - 10:00
Toll Road Case Study Discussion
10:00 - 11:00
Competitive Market Exposure
11:00 - 12:30
Counterparty Analysis
12:30 - 1:30
Lunch
1:30 - 4:30
Financial Strength and Cash Flow Modelling
4:30 - 5:00
Set up Case Study on Toll Road Project - Phase 2
Day 3
9:00 - 10:30
Toll Road Case Study Discussion
10:30 - 12:00
Legal and Documentation
Set up Case Study on Solar Park or other Renewable Energy
12:00 - 1:00
Lunch
1:00 - 2:30
Distressed Project and Recovery after Default
2:30 - 5:00
Credit Committee and Assignment of Risk Rating