Course dates
Featuring:
- Structuring large projects and accessing the most competitive funding in the oil and gas, energy, transport and other infrastructure sectors
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Using and analysing pro forma estimates and cashflow models
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Key legal risks in projects
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How to work with export credit agencies, multilateral institutions and other official players
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Using the capital markets for project transactions
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Cross-border leasing
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Managing interest rate, currency and commodity price volatility
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Credit derivatives and their applications in project finance
International Project Finance Training Course: 4-day session
Today, global markets for project finance are being redefined. In this environment the need for skilled analysis of project structures is acute. Banks, private investors, project developers, equipment suppliers, official creditors, and providers of credit risk enhancement must all be properly equipped to assess project risk and prospects for future performance in both in existing portfolios and new transactions. While differentiating between countries and industrial sectors, this program is designed to help participants break the project analysis process into its component parts.
They are exposed to techniques for assembling market information and making qualitative judgments, as well as being given tools for conducting thorough quantitative financial analysis and cash flow forecasting. Cases and examples from around the world that have successfully weathered recent market upheavals, as well as those that have deteriorated, are used extensively to ensure understanding and give participants practice in the application of concepts.
The program also examines differences between sources and providers of finance and risk support. This includes the bank market, euro-bond issuance, 144A private placements and even sources of local currency funding. Lectures cover many recent examples of securitization, leasing and structured financing techniques used in creative ways in project financing and other deals.
Additionally, careful attention is paid to the many techniques for enhancing the terms of funding including Multilateral Agencies like the World Bank /IFC/MIGA, as well as official providers like Regional Development Banks like IADB or EBRD, Export Credit Agencies and even Private Sector Insurance providers. Elements unique to financing projects in the oil and gas and electricity sectors are discussed as well as infrastructure projects like transport, and even water, which has long had difficulty in attracting private sector investment due to special characteristics.
Cashflow Modelling Training Course: 1-day session
This is a stand-alone cash flow modelling workshop. In a hands on session, using software developed by "ProFin Tools, participants will create a model for a LNG Plant suitable for examining project debt capacity as well as return on investment.
To find out more about accommodation, and places of interest within Paris please visit; http://en.parisinfo.com/
DAY 1
Structuring projects and creating a security package; discovering the most efficient sources of debt finance; introduction to cash flow modelling
International project finance markets today
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Current challenging markets for project finance transactions
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BOO, BOT, BOOT, BLT and other approaches to
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Private investment in public infrastructure
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Who are the players?
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Identifying and allocating risks
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What can go wrong ?
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Examples: financing pipelines, power projects and toll roads
Sources of finance: financing checklist
Traditional and contemporary sources of finance: bank loans
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Banks and the current club loan market
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Syndicated loan financing
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What security do banks want?
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Development bank "A" and "B" loans and other funding sources
- Current inter-creditor and other issues
Cashflow modelling workshop: analytical techniques and credit assessment.
Case study: working with cash flow modelling software to finance a gas processing plant. Participants break into small groups to prepare a case study that analyses a fertilizer project. A computer simulation will be used to model cashflows. Groups will present their solutions.
DAY 2
Infrastructure projects; power; export credit agencies
Case discussion
Legal issues in project finance
Using capital international and local markets in project finance
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U.S. private placements and Eurobond issuance for projects
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Comparing bond issuance to bank loans
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Nature of investors, timing and flexibility
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Project size and relative cost
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Security requirements
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Negative arbitrage issues
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The due diligence process / road shows
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Rating agency considerations
Export finance techniques
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Guarantees and insurance vs. funding
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Buyer and supplier credits
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Bank incentives inherent in ECA programs
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Costs and availability
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Securitisation of ECA guarantees
- Choosing a special purpose vehicle
Case study: financing a power plant. Risk allocation among various project participants in an Asian Power project. Testing the project's cash flows under varying scenarios with a cash-flow simulation model.What are acceptable DSCR levels? What returns does equity look for? When is bond issuance a realistic option?
DAY 3
Other sources of finance and political risk support; transport projects
Liberalising power markets
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Market forces and the effect on electrical supply
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Fragmentation of electricity generation
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Gencos/transcos/discos
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Merchant power plants (MPPs)
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Rating agencies' analytical model
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What happened in California?
Further roles for multilateral development agencies (MLA’s): political risk support
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World Bank Group
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Regional multilateral development banks (ADB, IADB, EBRD, EIB, Islamic Development Bank, etc)
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Bilateral Agencies (OPIC, Proparco, FMO, etc.)
Other sources of political and risk insurance
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Private sector providers
- Mono-line insurers
Financing airports, ports and other transportation projects
Case study: airport finance; negotiating a term sheet. Participants will break into groups to work on this limited recourse project structure. Discussion will focus on project risks, their allocation through contracts, the mix of financing, cash flow projections, as well as rating agency considerations in evaluating the proposed financing structure.
DAY 4
Leasing; water and sanitation projects; risk management with derivatives
Leasing applications
Water infrastructure
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Special features of limited recourse projects in water and sanitation
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Array of structures: service agreements, leasing, BOT, privatisation
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Who are the players? Investors and lenders?
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Desalination and electricity projects
- Case examples and PPP transactions
Case study: financing a water treatment plant. Participants will break into groups to prepare a case study concerned with financing a wastewater treatment plant in Latin America
Price volatility and risk management with derivatives in project finance
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Financial price movements today: volatility and risk
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Using interest rate and currency swaps to manage risk in projects
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Using options: caps, floors and collars
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Commodity-linked derivatives and securities
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Oil, gas and electricity hedging with case examples of application
Case Study: Interest Rate and Currency Risk Management for a Power Project.
DAY 5
Project finance modelling workshop
Participants will spend a day building a model for Ras Laffan, a liquified natural gas (LNG) project in Qatar.
They will assess a wide range of scenarios in order to test a limited recourse financing package for debt capacity and suitability for investment. With discussion of common approaches to modeling with Excel, ‘dos’ and ‘don'ts’ as well as the practical use models for negotiations.
Modelling workshop overview: objectives and approaches
Structuring the model and organising the data to create a cashflow statement
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Developing the assumptions page
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Construction costs and timing
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Operating cost, plant capacity Usage, fixed and variable costs
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Reinvestment, plant expansion, productivity shifts
Developing the profit and loss and balance sheet
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Factoring in reserves
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Considering currencies
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Tax calculations
Financing section
Ratios and sensitivity analysis: objectives and limitations
Measuring debt capacity and investor return using modelling output for initial project vetting supporting on-going negotiations
Workshop: the program’s fifth day session is a stand -alone cash flow modelling workshop. In a hands on session, using software developed by “ProFin-Tools”, participants will create a model for an LNG Plant suitable for examining project debt capacity as well as return on investment.
Centrally located hotel in Paris, Paris, France
This programme takes place on a non-residential basis at a hotel in central Paris. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.
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Meg Osius
Margaret Osius specializes in capital markets, and risk management, as well as international project finance. She works with corporations, financial institutions, public agencies, law firms, and private equity investors. Training and advisory work has covered approaches to financing infrastructure build-out and facilities acquisition, selecting among debt, equity, and hedging alternatives, and related topics. She has considerable professional experience with the oil and gas, power, transport, and telecom sectors.
Ms. Osius began her career at JP Morgan Chase Manhattan Bank, where, as a Vice President, she structured highly leveraged transactions and project financings and advised clients on foreign exchange and other price risk management strategies. Ms. Osius was responsible for a team of analysts responsible for evaluating the quality of the bank's global loan portfolio as well as that of its newly acquired affiliates. In that role she had extensive experience with workout and distressed debt.
Ms. Osius has published articles in the business press and co-authored several self-study guides covering international project finance, trade and export finance, foreign exchange, and financial futures. The World Bank has published her articles on approaches to financial analysis in emerging markets. She is a primary speaker in a series of video sessions created to cover the topic of Sound Banking Principles during executive training sessions in Moscow.
Until 2008 Ms. Osius was Chair of the Technical Advisory Panel (TAP) of the Public Private Infrastructure Advancement (PPIAF that provides technical assistance to emerging market governments. She is a member of the council on Foreign Relations and received an M.B.A. from INSEAD, the European Institute of Business Administration. Her B.A. degree is from Princeton University.
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