The term "project finance" is now being used in almost every language in every part of the world. It is the solution to infrastructure, public and private venture capital needs. It has been successfully used in the past to raise trillions of dollars of capital and promises to continue to be one of the major financing techniques for capital projects in both developed and developing countries.
Project Finance aims to provide: Overview of project finance Understanding of the key risks involved in project finance and techniques for mitigating risk *Techniques for effective evaluation of project finance from both a financial and credit perspective
The author differentiates between recourse and non-recourse funding, tackles the issues of feasibility, identifies the parties normally involved with project finance plans, and details techniques for realistic cash flow preparation.
Inspired by basic entry level training courses that have been developed by major international banks worldwide Will enable students, and those already in the finance profession, to gain an understanding of the basic information and principles of project finance *Includes questions with answers, study topics, practical 'real world' examples and an extensive bibliography
MSc Finance Students, MBA students studying Finance options, and new finance professionals
FOREWORD; OVERVIEW OF PROJECT FINANCE: INTRODUCTION TO PROJECT FINANCE; USES FOR PROJECT FINANCE; WHY USE PROJECT FINANCING; DESCRIPTION OF A TYPICAL PROJECT FINANCE TRANSACTION; PARTIES TO A PROJECT FINANCING; FINANCING SOURCES USED IN PROJECT FINANCING; UNDERSTANDING KEY PROJECT RISKS: ENTITY RISKS; TRANSACTION RISKS; MITIGATING AND MANAGING PROJECT RISKS; SECURITY; INSURANCE ISSUES; EVALUATING THE PROJECT: THE OFFERING MEMORANDUM; LEGISLATION RELATING TO INFORMATION MEMORANDA; FEASIBILITY STUDY – MAJOR ISSUES ADDRESSED; CREDIT RISK APPRAISAL – GENERAL CONSIDERATIONS; CONTRACTUAL FRAMEWORK: GENERAL; PRE-DEVELOPMENT AGREEMENTS; CONSTRUCTION AGREEMENTS; CONTRACTORS BONDS; OPERATING AND MAINTENANCE AGREEMENTS; SPONSOR SUPPORT AGREEMENTS; MANAGEMENT AGREEMENTS; REPRESENTATIONS AND WARRANTIES; PROJECT LOAN / CREDIT AGREEMENTS; SECURITY AGREEMENTS; PROJECT FINANCING IN THE ECONOMY: HISTORY AND OUTLOOK OF THE PROJECT FINANCE MARKET; TELECOMS SECTOR; POWER; OIL & GAS; MINING; INFRASTRUCTURE AND TRANSPORT; PULP AND PAPER; WATER AND WASTE WATER; THE UK PFI MODEL; APPENDICES: APPENDIX I MULTILATERAL FINANCIAL INSTITUTIONS; APPENDIX II GENERALLY ACCEPTED RISK PRINCIPLES RISK MAP; APPENDIX III CREDIT RATING AGENCY RATING SCALES; APPENDIX IV COUNTRY RISK CRITERIA; GLOSSARY; SUGGESTED READINGS
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- © Butterworth-Heinemann 2005
- 26th August 2005
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Andrew Fight is an international banking and training consultant with 20 years banking and finance experience and has trained in Banks and financial institutions throughout the world as well as in the U.K. His expertise is in all aspects of Corporate Credit, Analysing Banks and Financial Institutions Risk, Syndicated Lending, and Project Finance, and he has an ongoing research interest in Debt Recovery and the roles of Credit Rating Agencies in the investor creditor community. Andrew has written and developed course materials for both tailored and public courses for Euromoney Training, BPP Financial Training, Intellexis Training, the French Bankers Training Institute, Bankakademie in Germany, and aid programmes for the European Union, USAID Eurasia Foundation, and Asian Development Bank. He has also written a dozen books on Banking and Finance related subjects for Euromoney Publications, Wiley and Sons, Express Exec / Capstone Publishing. During the last year Andrew has led successful courses in Malaysia, India, Lebanon, Bulgaria, Georgia, Armenia, Algeria, France, Germany, and the UK
International banking and training consultant
"...a quick, easy-to-read introduction...an ideal starting point." -Financial Engineering News "Fight writes succinctly and clearly, and...his analytical insights are applicable to both big and small project financings." - The RMA Journal