This course is designed for the officials of Bhutan National Bank which enables the participants to, analyze business opportunities for their potential to be structured as a project financing, analyze the risks entailed by various forms of project and project financial structures, model a project financing, assess alternative project financing strategies and understand how transactions are priced and be able to price a transaction
Project Financing is a unique financing technique that has been used on many high-profile corporate projects. Employing a carefully engineered financing mix, it has long been used to fund large-scale natural resource projects, from pipelines and refineries to electric-generating facilities and hydroelectric projects. Increasingly, project financing is emerging as the preferred alternative to conventional methods of financing infrastructure and other large-scale projects worldwide.
Project Financing discipline includes understanding the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, and raise the funds. In addition, one must understand the cogent analyses of why some project financing plans have succeeded while others have failed. A knowledge-base is required regarding the design of contractual arrangements to support project financing; issues for the host government legislative provisions, public/private infrastructure partnerships, public/private financing structures; credit requirements of lenders, and how to determine the project's borrowing capacity; how to prepare cash flow projections and use them to measure expected rates of return; tax and accounting considerations; and analytical techniques to validate the project's feasibility.
The topics covered for the Training program are as below –
1. The fundamentals of non-recourse, project financing (structures, credit aspects, modeling)
2. Financial markets for project finance, including syndicated bank loans, capital markets, export credit agencies, multilateral institutions, and the private equity market
3. Infrastructure sectors and their business risks, as well as an appreciation of historical and institutional factors that affect infrastructure development in different regions of the world
4. Transaction structures and the documentation used to structure individual project financings
5. Political risk, especially as it affects infrastructure investment and financing
6. Currency risk as it affects infrastructure projects
7. Local currency financing (availability, limitations as a source of long-term, fixed-rate financing), and
8. International organizations relevant to infrastructure investment and finance.
