Chapter 1 Principles and Application of Project Finance
• Origins and History of Project Finance
• Why Sponsors use Project Finance
• Project Finance – Asset Class Performance
• Global Infrastructure Outlook
• The Infrastructure Gap in Emerging Markets
• Focus - Asia Infrastructure Needs
Chapter 2 Project Finance – Risk Analysis & Mitigation
• Commercial versus Contract Viability
• Sponsor R`isk
• Political Risk
• Construction & Completion Risk
• Operation & Maintenance Risk
• Supply Risks
• Reserve Risk
• Sales / Offtake Risk
• Approvals and Permits
• Social & Environmental Considerations
• Financial Risks
• Force Majeure Risk
• Regulatory & Change in Law Risk
Case Study – Mozal Aluminum Project, Mozambique
Case study learning objectives:
• Apply Project Risk Analysis, Mitigation and Allocation Learnings
• Structure Matters – Application of Effective Structural Risk Mitigation
• The Paradox of Infrastructure Investment and Finance – Higher Risk requires higher returns which expose lenders and Project to adverse sovereign actions
Chapter 3 Project Finance Agreements and Loan Documentation
• Construction Contracts in Project Finance
• Operations & Maintenance Contracts in Project Finance
• Offtake Contracts/Concession Agreements
• Supply Contracts
• Project Finance Loan Documentation
• Common Terms Agreement
• Account Agreement & the Cash flow “Waterfall”
• Direct Agreements
• Covenants and Security package
• Key Lender Protection Mechanisms & Strategies for Negotiating Finance Agreements
Case Study – Samba Drillship Oil & Gas Project, Brazil
Case Study Learning Objectives:
• How Project Finance Lender Security Rights and Protections Work
• Challenges and Issues Enforcing Lender Security Rights
• How Lenders Successfully Exercise Step-in Rights
• Ring-fencing Projects from Bankruptcy Actions
Chapter 4 Risks and Challenges of Project Financing in Emerging Markets
• Track Record of Project Financing in Emerging Markets – The Asian IPP Experience
• Currency Mismatch - Lessons Learned from the Asian Currency Crisis
• How the Asian Currency Crisis Transformed the Approach to Project Finance
• Role of Multilateral, Bilateral Development Banks and Export Credit Agencies
• Stakeholder Alignment Issues
• Mitigating Political and Sovereign Risks
• Local Community Benefits and Social Infrastructure
Case Study – Dabhol Power Project, India
Case Study Learning Objectives:
• Why Projects in Emerging Markets Fail
• Importance of Stakeholder Alignment and Balanced Risk Adjusted Returns
• Market Entry Strategies for Emerging Markets
Chapter 5 Sources of Financing for Emerging Markets
• Multilateral Development Banks
• Bilateral Development Banks
• Export Credit Agencies
• Commercial Banks
• Political Risk Insurance Market – Breach of Contract and Non-Honoring of Financial Guarantees
• Project Bonds
• Equipment Suppliers and Financing
• Institutional Lenders (insurance companies, infrastructure funds, pension funds, private equity etc.)
• Strategies for Multi-Sourced Financing in Emerging Markets
Case Study – Nam Theun 2 Hydro Project, Laos
Case study learning objectives:
• Project Finance Structuring to Achieve Multi-Source Financing
• Effective Documentation and Contract Structure
• How to Address Cross Border/Cross Currency Risks
• How to Achieve Efficient Financial Execution
Chapter 6 Financial Structuring and Debt Sizing
• The Borrower/Sponsor Objectives
• Lenders Objectives
• Debt Sizing & Sculpting
• Financial Structuring – Debt Sizing and Loan Amortization
• Lender Ratios for Debt Calibration & Stress Testing
• Cash Traps and Sweeps
Case Study – Sabine Pass LNG Project & USA-Asia Energy Flows
Case Study Learning Objectives:
• Application of Mini-Perm Financing
• Project Finance Structuring to Optimize Bank and Bond Financing
• Cross Border Energy Trade Flows between US and Asia
Chapter 7 Environmental Social and Governance (ESG)
• Sustainable Infrastructure Finance and Investing
• Equator Principles
• Multilateral Development Banks ESG frameworks
• IFC Impact Investing Principles
• Green Bonds
• Sustainability Project Financing and UN Social Development Goals
• How to Unlock ESG Institutional Capital
Case Study – Manzanillo Container Port Terminal Project, Mexico
Case study learning objectives:
• Understanding and Analyzing Market Risk in Project Deals
• Role of Multilateral Development Banks Managing Environmental and Social Issues
• Assessing and Mitigating Social and Environmental Risks
Chapter 8 Emerging Markets Project Finance Bonds & Local Capital Markets
• Project Bonds Versus Project Loans
• Project Bonds Investor Base & Market Liquidity
• Local Currency Project Bonds & Partial Credit Guarantees/Insurance Wraps
• Recent Project Bond Case Study in Emerging Markets
Case Study – Mong Duong 2 Power Project, Vietnam
Case study learning objectives:
• Example of Asia frontier market power project capital markets bond refinancing
• Project finance structuring requirements for bond investor refinancing
• Terms and conditions for emerging markets bond deal
Chapter 9 China’s Belt and Road Initiative
• Background and Scope of the Belt and Road Initiative
• Belt and Road Initiative Infrastructure Needs – Spotlight on the China-Pakistan Economic Corridor
• China’s Financing Strategy for BRI Infrastructure Development
• Emergence of New Multilateral Developments Banks – Focus on Asia Infrastructure Investment Bank
Chapter 10 Project Finance Market Developments and Finance Structures
• Mini-Perm Financing Structures
• Back-Levered Financings for Renewable Energy Projects
• Infrastructure Guarantee Products – Bond and Private Capital Credit Enhancement
