Comprehensive course analysis
Who should attend
This course is ideal for people who are new to project finance or those who have already some experience in the sector.
It will be of particular benefit to staff in: business development, portfolio management, credit function, energy, mining, infrastructure, PFI/PPP, legal professionals, accountants, insurance brokers and advisors, ECA and multilateral agency staff.
About the course
The course takes place over 16 weeks and comprises six core units, followed by two elective pathways (which participants choose between). The units will be released every two weeks from the start of the course. Download the units or study completely online.
Assessment and Post Graduate Certification
At the end of each unit there is an assessment that will allow you to measure your progress. If you wish to receive a Postgraduate Certificate from Middlesex University, you will also need to submit an assignment of 5000 words. The assignment will be based on an on-going case study that runs throughout the duration of the course.
Each unit is now complimented by a 10-20 minute video from the course director, Steve Mills, taking you through the components of the course with particular emphasis on complex areas.
Unit 1 - An Introduction to Project Finance
This module will introduce the meaning of Project Finance, the reasons for its use, the risk/reward relationship and the impact of the credit crisis on project financing.
Unit 2 - Qualitative Risk Identification Analysis & Mitigation (part A)
Explain the key qualitative risk factors analysed by lenders when evaluating a project financing – in this unit particularly sponsor risk, country/political risk, completion period issues and operation & maintenance arrangements. It will also explore how these risk factors are perceived by bankers, mitigated and (where necessary) allocated to other parties within or outside the project structure.
Unit 3 - Qualitative Risk Identification Analysis & Mitigation (part B)
Explain the key qualitative risk factors analysed by lenders when evaluating a project financing – in this unit particularly supply risk, reserve risk, sales /offtake arrangements, approvals / permits issues, environmental factors and regulatory considerations. Explore how these risk factors are perceived, mitigated and (where necessary) allocated to other parties within or outside the project structure.
Unit 4 - Quantitative Analysis, Debt Sizing & Structuring
Examine how an economic model of the project’s projected cash flow is employed to structure the drawing and repayment of debt, the use of “Cover Ratios” to size debt, structure the repayment of the financing, test the debt-servicing capacity of the project in downside scenarios and provide “command and control” mechanisms during the life of the financing. It will also analyse the impact of the debt structure on the IRR of the sponsor and how the lender’s need for debt servicing security is balanced with the objectives of the sponsor.
Unit 5 - Documenting the Deal
Explain the process of documenting a project financing transaction and the components of the major documents with particular reference to the loan agreement itself. Analyse the purpose and structure of the key parts of a project loan agreement – especially the control mechanisms incorporated to protect lenders in periods of weak cash flow or at the point of default.
Unit 6 - Project Finance Time-Line & Project Finance Security
Explain in detail the process of negotiating and documenting a limited-recourse financing and the way in which the steps (and their duration) have been impacted by the Credit Crisis. Provide a clear appreciation of the different instruments typically used by lenders to acquire a first-ranking security interest in respect of the project vehicle company, fixed and current assets, project contracts and other rights.
Elective Unit 1 – Path A
- Infrastructure Project Finance
Understand in detail the qualitative risk analysis and debt structuring features peculiar to infrastructure project finance.
- PPP/PFI Project Finance
Learn in detail the qualitative risk analysis and debt structuring features peculiar to PPP/PFI project finance, the drivers for the establishment of the sector and the key documents which underlie PPP/PFI projects – particularly the concession.
Elective Unit 2 – Path B
- Oil & Gas/Mining Project Finance
Cover the particular challenges faced by lenders providing limited-recourse finance to projects in the extractive industries. Gain a clear understanding of the variations in financing structure and practice seen in key sub-sectors.
- Conventional & Renewable Power Project Finance
Set out in detail the qualitative risk analysis and debt structuring features peculiar to power project finance, the impact of the power sales arrangements on debt capacity and structure and the differences between conventional (gas and coal-fired) projects and those involving renewable energy sources.
Steve Mills is a well-known figure in oil and gas finance. Until he decided to devote himself to training, development work and writing in the area of project finance, he was Head of Oil and Gas Project Finance for Royal Bank of Scotland in the City of London. Steve is a career project finance b...
Videos and materials
Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.