Project Finance Documentation

This course is designed so that participants will be able to identify, understand and negotiate the key contractual provisions in Project Finance Documentation

Participants are guided through the lenders’ approach to analysing project risks and understanding the various mitigation strategies available in the project documentation.

The course highlights the dozen or so ”hot buttons” which underpin all project finance transactions and, in each case, the participants will learn what options are available and the likely lender requirements.

The course also includes a finance term sheet case study, during which the participants play the role of advisers to lenders, responding to a sponsor-generated term sheet (or vice versa).

The course is led by Calvin Walker, who shares his knowledge gained from over 25 years’ experience leading and advising on project finance transactions at two major international law firms. The course is delivered by live webinar over one half day (3 ½ hour) session, including one 15 minute break.

Course Overview

Bankability of Project Documents and Construction Risk

  • Core risks across major project contracts
  • Risk mitigation and the bankable contractor
  • Construction contract models
  • EPC contract timeline
  • Design liability/wraps
  • Liquidated damages – delay and performance
  • Scope of work/variation orders
  • Force majeure
  • Pre-completion support options

Documentation “Hot Buttons”

  • key provisions in the Finance Agreements
  • Equity injection timing and support
  • Completion test mechanisms
  • Lender control accounts
  • Distribution controls
  • Refinancing provisions
  • Cashflow waterfall
  • Default ratio tests
  • Default triggers in other Project Documents
  • Amendments to project documents
  • Reinstatement using insurance proceeds
  • Intercreditor arrangements
  • Project Insurance
  • Direct agreements
  • Security

Finance Term Sheet Case Study

The participants will review a draft term sheet prepared by sponsors and propose ways in which it might be amended in favour of lenders. The trainer will guide the participants through detailed aspects of the term sheet