Project Finance Training Course

Have you ever wondered looking at the massive high-speed rail, telecommunication towers, wind turbines, etc. that how such complex undertakings have been financed and come into existence ?? You are actually being benefitted from infrastructure projects that have been financed by a mechanism called "Project Finance". In simple words, we could say Project Finance is raising funds / capital to pay for a Project.

Sometimes funding for such huge projects becomes difficult through traditional finance methods since it involves huge risks, which can be spread amongst the various participants in Project Finance, increasing the chances for the Project to be a success. These participants could include multilateral organizations, governments, regional banks, and private entities.

Also Project Finance is considered as the preferred method of financing since it greatly minimizes the risk for the sponsoring company (Company or a group of companies that initiates the Project), since the repayment of debt is not based on the assets reflected on their balance sheet , but on the Project revenues.

In every project there is a core entity created by the sponsoring company that is responsible for organizing, developing, and ensuring that the project is operational, which is the Special Purpose Vehicle (SPV). It also shields the assets of the sponsor company in case of a Project failure.

In a nut shell we could say that the Project Financing is financing of;

• Often long-term, industrial projects
• Increasingly those which provide public services or infrastructure
• Based upon complex financial and contractual structures commonly involving many legal entities

The overall aim of this amazing online training is for the participants to get a complete overview of the Project Financing mechanism and taking them through all stages of a project financed transaction.

 Specifically, the project finance training tutorials would equip participants to:

• Apply a structured approach to assess costs involved in project finance.
• Undertaking a thorough Feasibility Study of the Project.
• Identifying the various risks involved in Project Finance and measures to mitigate them.
• Understanding the structure of Project Finance such as the key parties and documents involved.
• Build a Project Finance Model.
• Use excel tools like NPV, IRR, Payback, Breakeven for evaluating a large project.

 Target Audience for Project Finance Training

• Students pursuing Degree, Diploma, Engineering and commerce who want to make a career in finance
• MBA in Finance, BBA in Finance
• Professionals working for investment or commercial banks, investment funds or fixed income investors
• Interested in analyzing Project finance risks and cost elements

Pre-requisites for Project Finance Training

• Desire to learn

Project Finance Training - Highlights

• Introduction to Project Finance:

In this section of the course you would be briefly introduced to the world of project finance. It gives a small gist of what project finance means, its key features, how it differs from corporate finance, why this financing mechanism is better, types of projects financed through project finance, structure of project finance and finally the steps through which a project finance deal takes place.

• Estimating the cost of the project:

For any project this forms the most important part, upon which the entire deal structure is dependent. This module will throw light upon the major cost element that is involved in a project and how they need to be accounted for.

• Feasibility analysis:

This stage of the course explains how we judge if a project is viable to be undertaken. There are various elements that are scrutinized for feasibility which have been explained using examples over here.

• Means of finance:

Our next module in this training focuses on the various types of financing that are available for projects along with their advantages and disadvantages in detail.

• Risk analysis and mitigation:

Every project has to deal with certain amount of risks. Through this section we will look at the various risks that are involved in a project finance deal and how they are mitigated.

• Important ratios in project finance:

There are various ratios that are used in fundamental analysis of a project such as the DSCR, BEP, turnover ratios, ROCE, sensitivity analysis which will be dealt in this section of the course.

• Project finance modeling:

Project Finance modeling includes projecting the model and doing project feasibility (NPV, IRR) analysis where project debt and equity used to finance the project are paid back from the cash flow generated. This gives hands on experience of how a project finance model is created.

• Preparing a project finance report:

At the end of this course we discuss what are the various elements of a professional project finance report, what all has to be included in its each section and how important it is to create one.

Project Finance Training Course