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This title is out of print.
Project Finance, 2nd edition clearly explains both the theory and practice of project financing and, having examined the skills necessary to bring a project to a successful close, teaches you how to apply them.
The 2nd edition includes a module which examines risk structuring and allocation in key industry sectors: power, transportation/tollways, railways, airports, ports, mining, oil and gas, telecoms, satellites, water/waste water.
Organised into 6 modules this training manual will describe and discuss:
- the characteristics of project finance
- the ways of handling the risks involved
- risk identification and allocation in the main industry sectors
- the techniques of analysis
- typical structures and
- legal and documentation issues
This workbook covers finance, business economics, banking and law in one set of workbooks and all the skills are applied in a multi-disciplinary way because of the necessity to tackle each and every risk issue.
Who Should Read this? Lawyers, project analysts and managers, treasurers, and anyone involved in project finance
Also by Richard Tinsley:
Richard Tinsley also delivers training in this area. To see how you can arrange a tailored in-house course, please click here.
Table of Contents
Project Finance, second edition
Table of Contents
Module 1: Introduction and Glossary Introduction Risk sharing Definitions Types of project finance Misconceptions Key characteristics Sectors Components Participants 1. Sponsors 2. The borrower 3. Financial advisers 4. Arrangers/lead underwriters 5. ECAs/MLAs 6. Agent/trustee 7. Lessors 8. Independent experts 9. Lawyers 10. Governments 11. Construction contractors 12. O&M companies 13. Insurers 14. Swap counterparties 15. Suppliers 16. Equipment vendors 17. Offtakers 18. Transportation companies 19. Ratings agencies Stages in project financing 1. Identification of the market 2. Technical feasibility 3. Financial feasibility 4. Commitment letter 5. Mandate 6. Syndication 7. Documentation 8. Financial closing 9. Administration Conclusions Answers to test questions Glossary
Module 2: Risk Analysis and Allocation Introduction Risk definitions Risk classification Statistical Modellers Checklist Project finance Insurance Structural/jigsaw Risk structures and allocation Cash flow and risk Operating risk Technical component Cost risk component Management component Participant risk Completion risk Supply risk Market risk Infrastructure risk Environmental risk Political risk Force majeure risk Foreign exchange risk Engineering risk Syndication risk Interest risk Legal risk Conclusions Risk tradeoff Answer
Module 3: Sector Protocols Introduction Power Transportation/tollways Railways Airports Ports Mining Oil and gas Telecoms Satellites Waste/ waste water Answer to test questions
Module 4: Project Feasibility and Credit Factors Introduction Engineering feasability Independent reviews Financial feasability Project cash flows Operations report Operating cash flow report Financing reports Ratio analysis Payback Present value Accounting ratios Answers to test questions Appendix
Module 5: Structuring and Funding Introduction Structuring Structure Structure types Funding Derivatives Export credit agencies Multilateral agencies Political risk insurance Debt: equity swaps Capital markets Rating Tax-effective structures Recourse Advisers Information memorandum Syndication Agency/trustee New structures/ funding Answers to test questions
Module 6: Legal and Documentation Issues Documentation framework Project contracts Financing agreements Conclusions Answers to test questions
Authors
Richard Tinsley is President of International Advisory & Finance, a Project-Finance boutique, headquartered in Sydney, Australia. His career includes 29 business cards from such fields as quantity surveying in the construction industry, to economics and engineering in the resources sector, project analyst and negotiator in the automobile industry, to professional independent director, chief financial officer, and managing director of publicly-listed companies. Australia is the fifth country in which he has lived permanently.
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