Project Finance Overview - from Inception to Financial Close
4.0 (133 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
2,273 students enrolled

Project Finance Overview - from Inception to Financial Close

How infrastructure deals are financed around the world
4.0 (133 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
2,273 students enrolled
Created by Matthew Bernath
Last updated 2/2020
English
English [Auto]
Current price: $13.99 Original price: $19.99 Discount: 30% off
5 hours left at this price!
30-Day Money-Back Guarantee
This course includes
  • 2 hours on-demand video
  • 1 downloadable resource
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
Training 5 or more people?

Get your team access to 4,000+ top Udemy courses anytime, anywhere.

Try Udemy for Business
What you'll learn
  • Project finance
  • Infrastructure finance
  • Financing infrastructure deals
Requirements
  • Basic understanding of finance
Description

Infrastructure Finance is not just another form of investment banking. It finances our roads and our bridges, our hospitals and our power stations. It breathes life into our economy.  In this course, you will learn how infrastructure deals are financed, and what makes them so complicated.  The course covers project finance structures, risk mitigation and insight from subject matter experts.  The course only covers a high-level overview of project finance modelling and does not contain any project finance modelling exercises.

Who this course is for:
  • Bankers
  • Infrastructure financiers
  • Project sponsors
  • Government
  • Infrastructure developers
  • Project financiers
  • Project finance bankers
  • Infrastructure finance bankers
  • EPC companies
  • O&M companies
  • Entrepeneurs interested in infrastructure
  • Development finance institutions
Course content
Expand all 20 lectures 01:51:01
+ Introduction
2 lectures 06:11

What is Project Finance? What differentiates it from corporate or leveraged finance? And why does it suit infrastructure projects? Project Finance is also sometimes known as Infrastructure Finance as infrastructure is what it typically finances.

  • Project Finance revolves around the financing of long-term infrastructure

  • It is typically limited or non-recourse finance

  • It is therefore highly structured to ensure that risks are mitigated

  • Debt and Equity are paid back from cash flow generated by the project, and only this cash flow

  • The lenders’ recourse is limited to project assets, including performance and completion guarantees and bonds

  • Most large infrastructure projects are Project Financed as it enables long-term debt and separation from a company which may not be able to raise that sort of finance on their own accord

  • So, what do we finance? A brand new SPV.

Preview 02:40

Who am I and who are you?


Matthew is an entrepreneur, engineer, CFA® charterholder and Excel addict with a love for finance, data science, data analytics, process optimisation and building businesses. Over R4bn has been raised using financial models that Matthew has built.

Matthew has consulted to five of the largest South African banks and numerous corporates and parastatals on a number of technology, dashboard, strategy, risk, training, financial modelling and process re-engineering engagements. He has provided Excel, VBA, Data Analytics, Financial Modelling and Data Science training to some of the largest global banks. With practical insight and a broad client base, Matthew has never been rated less than 5 out of 5 for subject matter expertise. He also hosts the Financial Modelling Podcast, which has been rated as one of the top finance podcasts by the Corporate Finance Institute.

Preview 03:31

Do you know the difference between project finance and other financing structures?

What is Project Finance?
3 questions
+ What is Project Finance?
5 lectures 35:06

According to https://www.investopedia.com/terms/p/projectfinance.asp:


Project finance is the funding (financing) of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure. The debt and equity used to finance the project are paid back from the cash flow generated by the project.

Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights, and interests held as secondary collateral. Project finance is especially attractive to the private sector because companies can fund major projects off-balance sheet.

Preview 03:41

Project finance deals follow a process flow - from origination and project initiation to Financial Close.  The process will include certain milestones such as a financial model audit, agreement on legal agreements, hedging of Forex and interest rates and credit and investment approval for debt and equity respectively.  Various independent advisors will also be used throughout the process to support the deal and provide expert advice and guidance.

Preview 11:32

It is important to understand all of the parties in an infrastructure finance deal and what they are responsible for!  An infrastructure finance deal will involve many different parties and companies, coming together to build and operate an infrastructure asset.

Components of a Project Finance Deal
09:10

Project Finance deals are highly structured with many different parties, from the construction contractor to lenders.  Advisors range from insurance and hedging advisors to technical advisors who will provide guidance on the technical feasibility of the solutions and plans proposed.  All of these parties work together to ensure the project best meets everyone's needs, and especially the end-user of the infrastructure, whether it be the public or a private entity.

A Typical Project Structure
04:52
Interview with a construction (front-end) and Infrastructure lawyer on contracts
05:51
+ The Nature of the Asset
2 lectures 14:54
The Nature of the Asset
12:59

What is a Lender’s Technical Advisor, or LTA?  In this interview we find out why an LTA is so important in an infrastructure finance deal.

Interview with an Infrastructure Technical Advisor
01:55
+ The Project Finance Model
5 lectures 28:28
The Cash Flow Waterfall Part 1
02:01
Cash Flow Waterfall vs. Cash Flow Statement
02:03
Complexities of the DSRA
02:48
Overview of A Project Finance Model - Part 1
08:23
Overview of A Project Finance Model - Part 2
13:13
Project Finance - Finance Quiz
5 questions
+ Project Finance Risks and Risk Mitigation
5 lectures 22:47
Overview of Project Finance Risks
09:01
Risks - Key Terminology
02:07
Hedging
01:45
Interview with a construction (front-end) and Infrastructure lawyer
05:01
Interview- Derisking a Project with a Techincal Advisor
04:53
Project Finance Risk Quiz
3 questions
+ Financial Close
1 lecture 03:35
Financial Close
03:35
Project Finance - Financial Quiz
9 questions