OBJECTIVE

To have an understanding of key Risk Management factors in this special area of Financing where the Cash flows of the Economic unit will be critical to provide both the debt servicing for the Bank and dividend cover for the Equity sponsors.

APPROACH

By the end of the course, delegates should have developed their understanding of:
-The key features of a project finance transaction
- Parties involved - interests and roles
- Project Finance structures
- Project Finance Risks
- Credit risks
- Construction and Technical risks
-Operational risks- Implementation risk
- Supply, off-take and sales risks
- Political, legal and regulatory risks
- Foreign exchange and interest rate risks
- Environmental risks
Risk mitigation techniques:
- Pre-completion risks
- Turnkey construction contracts and completion guarantees,
Projected cash flow and risks:
- Assessing cash flow volatilities and sensitivities
- Key ratios: Interest Cover and Debt Service