Online Project Finance Training - The Fundamentals

This is a online course is to gain fundamental understanding of Project Finance. The aim is to learn about the features and concepts in Project Finance. The tutorials will help you learn about the Estimating the cost of the project, Feasibility Analysis, Means of finance, Risk analysis and Mitigation, Important Ratios in Project Finance, Project Finance Modeling and Preparing a Project Finance Report.

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 3h 23m | 33 Videos | 85922 Views |   All Levels

Have you ever wondered looking at the massive high-speed rail, telecommunication towers, wind turbines, etc. that how such complex undertakings have been financed and come into existence?? You are actually being benefitted from infrastructure projects that have been financed by a mechanism called “Project Finance”. In simple words, we could say Project Finance is raising funds/capital to pay for a Project.

Sometimes funding for such huge projects becomes difficult through traditional finance methods since it involves huge risks, which can be spread amongst the various participants in Project Finance, increasing the chances for the Project to be a success. These participants could include multilateral organizations, governments, regional banks, and private entities.

Also, Project Finance is considered as the preferred method of financing since it greatly minimizes the risk for the sponsoring company (Company or a group of companies that initiates the Project), since the repayment of debt is not based on the assets reflected on their balance sheet, but on the Project revenues.

In every project, there is a core entity created by the sponsoring company that is responsible for organizing, developing, and ensuring that the project is operational, which is the Special Purpose Vehicle (SPV). It also shields the assets of the sponsor company in case of a Project failure.

In a nutshell, we could say that the Project Financing is the financing of;

• Often long-term, industrial projects
• Increasingly those which provide public services or infrastructure
• Based upon complex financial and contractual structures commonly involving many legal entities

The overall aim of this amazing online project finance training is for the participants to get a complete overview of the Project Financing mechanism and taking them through all stages of a project financed transaction.

Specifically, the Project Finance Training Tutorials Would Equip Participants To:

• Apply a structured approach to assess costs involved in project finance.
• Undertaking a thorough Feasibility Study of the Project.
• Identifying the various risks involved in Project Finance and measures to mitigate them.
• Understanding the structure of Project Finance such as the key parties and documents involved.
• Build a Project Finance Model.
• Use excel tools like NPV, IRR, Payback, Breakeven for evaluating a large project.

Target Audience for Project Finance Training

• Students pursuing Degree, Diploma, Engineering, and commerce who want to make a career in finance
• MBA in Finance, BBA in Finance
• Professionals working for investment or commercial banks, investment funds or fixed-income investors
• Interested in analyzing Project finance risks and cost elements

Pre-requisites for Project Finance Training

• Desire to learn

Project Finance Training –  Highlights

• Introduction to Project Finance:

In this section of the project finance courses, you would be briefly introduced to the world of project finance. It gives a small gist of what project finance means, its key features, how it differs from corporate finance, why this financing mechanism is better, types of projects financed through project finance, a structure of project finance and finally the steps through which a project finance deal takes place.

• Estimating the cost of the project:

For any project, this forms the most important part, upon which the entire deal structure is dependent. This module will throw light upon the major cost element that is involved in a project and how they need to be accounted for.

• Feasibility analysis:

This stage of the project finance courses explains how we judge if a project is liable to be undertaken. There are various elements that are scrutinized for feasibility which have been explained using examples over here.

• Means of finance:

Our next module in this training focuses on the various types of financing that are available for projects along with their advantages and disadvantages in detail.

• Risk analysis and mitigation:

Every project has to deal with the certain amount of risks. Through this section, we will look at the various risks that are involved in a project finance deal and how they are mitigated.

• Important ratios in project finance:

There are various ratios that are used in a fundamental analysis of a project such as the DSCR, BEP, turnover ratios, ROCE, sensitivity analysis which will be dealt in this section of the project finance courses.

• Project finance modeling:

Project Finance modeling includes projecting the model and doing project feasibility (NPV‚ IRR) analysis where project debt and equity used to finance the project are paid back from the cash flow generated. This gives hands-on experience of how a project finance model is created.

• Preparing a project finance report:

At the end of this project finance courses, we discuss what are the various elements of a professional project finance report, what all has to be included in its every section and how important it is to create one.

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