Introduction to Project Finance

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

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