Delivered by internationally certified and recognized experts in LBS and the PPP domain of practice, this training seminar is designed to assist investment professionals and financial analysts to fully understand the practical techniques, skills, and spreadsheet models needed to analyze, structure, negotiate and ultimately complete successful project-backed financing.
By presenting effective financial model design techniques, analyzing case studies of project financing models and participating in role-playing simulations to analyze and negotiate infrastructure project financings, participants in this program will learn how to design and structure project financing models, how to review and critique project financing models, as well as how to strengthen the structure and to negotiate infrastructure project financing.
Understanding Fundamental Requirements of Limited-Recourse Project Financing
- Review of fundamental rationale for project financing
- Key technical structures of limited-recourse project financing vs. sovereign financing vs. corporate financing
- Understanding the key trends and dynamics that have driven and shaped the global project financing market since 1990
- Understanding the role of financial analysis and project financing spreadsheet design and development within the project financing lifecycle
- The impact of the current global financial crisis on the requirements for projects financing analysis and spreadsheet development
Financial Analysis Skills for Project Financing Spreadsheet Models
- Understanding key practical characteristics of effective project analysis models: clarity, flexibility
- And robustness
- KIM STAKING - Distinguishing three key components of effective financial analysis models; inputs, data manipulations, and outputs
- Specifying the analytical needs of key project stakeholders: Users and tariff affordability; Investors and Return on Equity (ROE) and payback periods; Lenders and Debt Service Coverage Ratios
- (DSCRs); Governments and Value for Money (VfM) benefits; and other stakeholders (labor, local suppliers, etc
- Designing, labeling, and programming key financial model worksheets: The input and results worksheet, demand projections, capital investments, financing sources, income statement, revenue projection, depreciation schedules, debt schedules, cash flow statement, and balance sheet projections
Analyzing Changes to Key Project Financing Structures: Sensitivity Analyses and Credit Enhancement
- Understanding and applying sensitivity and scenario analysis techniques
- Single-iteration variable analysis vs. multi-iteration
- Monte Carlo simulation analysis
- Analyzing the results of investment sensitivity analysis: identifying the need for additional credit enhancements to establish “bankability”
- How to structure, model, and apply project financing credit enhancement techniques: capital enhancement techniques: capital contributions, minimum demand and off-take guarantees, reserve accounts, subordinated debt, additional sources of revenue, public equity, and other credit enhancements
This seminar is designed specifically for financial analysts, investment bankers, consultants, transaction advisers as well as chairpersons, directors, commissioners and managers of parastatals currently involved or intending to engage in PPPs through project financing; chairmen, directors and managers of private companies who are intending or are currently engaged in PPPs.