Project Finance

Register here! Get an early bird 10% discount if you pay on or before August 11, 2018. If you enroll in groups of 3, get an additional 5% group discount.

Description

Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure, in which project debt and equity used to finance the project are paid back from the cash flow generated by the project. It has become an essential source of financing for capital-intensive projects, especially in developing countries. This seminar will cover topics that include evaluation of the financial viability of an investment, cost of capital, project risk management, and organizational and financial structuring.

Objectives

At the end of the seminar, the participants are expected to:

  1. Evaluate the financial viability of an investment.
  2. Determine the effects of capital structure on the cost of capital.
  3. Identify the common features of project finance transactions.
  4. Describe the advantages and disadvantages of project finance.
  5. Differentiate corporate finance from project finance.
  6. Identify the players in project finance.
  7. Analyze the risks and how to allocate them through contracts with special purpose vehicles (SPVs).
  8. Evaluate the cash flows from the project.
  9. Recognize the risks and identify the mitigating factors in project financing.
  10. Identify the possible sources of financing.

Who Should Attend?

The seminar can be attended by investment bankers, project engineers, regulators who monitor big investment projects, financial advisers, and credit and stock market analysts. 

Schedule of Activities (3 days)

August 25 (Saturday) 8:30am to 4:00pm

Morning

  • Overview of Infrastructure Investments
  • Capital Budgeting

Afternoon

  • Cost of Capital
  • Capital Structure

September 1 (Saturday) 8:30am to 4:00pm

Morning

  • Overview of Project Finance
  • Project Financing vs Corporate Financing
  • Advantages and Disadvantages of Project Financing
  • Importance of Risk Allocation in Project Finance
  • Approaches to Risk Identification and Allocation
  • Construction and Operating Risks
  • Market Risks
  • Financial Risks
  • Political and Regulatory Risks

Afternoon

  • Cash Flow Analysis in Project Financing
  • Cash Flow Analysis
  • Lender Financial Metrics
  • Forecasting Techniques and Limitations
  • Dealing with Risks in Cash Flow Analysis
  • Legal Considerations in Project Financing Due Diligence
  • Legal Environment and Regulatory Conditions
  • Determining the Project Structure
  • Key Contractual Agreements and Structuring Considerations

September 8 (Saturday) 8:30am to 4:00pm

Morning

  • Sources of Project Financing
    • Bank Debt
      • Club Financing
      • Syndicated Loan Financing
      • Security Requirements
    • Development Bank “A” and “B” Loans (MDB, ECA, etc)
    • Project Bonds
    • Inter-creditor Issues

Afternoon

  • Case Study: Pipeline Project

Methodology

The seminar will be conducted through the following approaches: lecture, exercises, workshop and case discussion.

Resource Persons

The seminar will be conducted by the following:

  1. Eduardo Francisco, President of BDO Capital Corporation
  2. Joel Yu, former Chief Regulator of the Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office
  3. Lawrence Velasco, Project Development Service Director of the Public-Private Partnership (PPP) Center of the Philippines

Venue

Virata School of Business, UP Diliman, Quezon City

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