MASTERCLASS

Introduction to Project Finance

Live Webinars from 9.00am to 12.30pm (UK)
March 3rd, 5th and 7th 2025
£1,399 (plus VAT if applicable)
REGISTER HERE

This course has been designed to introduce participants with little or no prior knowledge of project finance to those fundamental aspects that are applicable to all project finance transactions.

Prior to the Course, participants will each receive a package of material (written and supported by three short videos) describing and explaining the basics of project finance fundamentals, including:

  • The Quest for Leverage
  • What is Project Finance?
  • Limited and Non-Recourse Finance
  • Parties to a Project Finance
  • Introduction to the Financial Markets
  • The Importance of Cashflow
  • Why Project Finance is used
  • The Project Finance Market – Recent Trends

This Course will be delivered via Zoom 3 half day (3 ½ hour ) sessions, with each session delivered by a specialist trainer.

In the first session, which will be delivered by Ian Cogswell, participants will review the pre-course material before learning about the qualitative risk analysis that underpins all project finance transactions, reinforced through a specifically developed case study, the background to which participants will have received prior to the course.

The second session, delivered by Audrey-Caulliez-Louis, will focus on quantitative risk analysis to enable participants to gain an understanding how debt facilities are sized.  We will use a financial model that has been specifically designed for training purposes to illustrate how qualitative risks can be quantified through effective sensitivity analysis.

During the final session, Calvin Walker will guide participants through the full range of project finance documentation, including a review and analysis of actual transaction documents and the explanation of key legal issues.

Course Overview – Day 1

The Fundamentals of Project Finance

  • What is Project Finance?
  • Review of Pre-Course Material

Risk Identification & Mitigation

  • Sponsor Risk
  • Country / Political Risk
  • Sources of debt finance
  • Construction & Technology Risk
  • Supply / Feedstock Risk
  • Offtake risk
  • Operation and Maintenance Risk
  • Regulatory Risk
  • Environmental, Social & Governance Risk

Case Study Exercise – Risk Identification

Using the risk identification framework to identify key risks and propose suitable mitigants of a renewable energy project.

Day 2

Financial Risks

  • Understanding the Financial Model
  • Key Measurement Tools and Debt Sizing
  • Repayment Profiles & Debt Tenors
  • Key Financing Risks and Mitigants
  • Hedging instruments

Financial Model Analysis

  • Key inputs
  • Sensitivity Analysis

Case Study Exercise – Sensitivity Analysis

Establishing and running financial model sensitivities to quantify the qualitative risks previously identified in the renewable energy project

Day 3

Project Documentation

  • Concession Agreements
  • EPC/Construction Contracts
  • Offtake/Power Purchase Agreements
  • Fuel Supply Agreements
  • O&M Agreements

Finance Documents

  • Credit Agreement
  • Accounts Arrangements
  • Equity Arrangements
  • Intercreditor Agreement
  • Direct Agreements
  • Security Documents
  • Insurance Issues

Case Study Exercise

Review and analysis of project structure and documentation extracts from an actual project finance transaction.