Updated October 25, 2023
Project Finance Jobs
As we all know, there are many job opportunities in finance, but somehow, many of us are unaware or don’t know that such jobs in finance do exist, and among those few jobs are Project Finance Jobs. It is one of those finance jobs in high demand today. Project Finance specifies how a company or a business obtains funds to complete a project.
A project finance consultant is a high-level professional who informs higher executives and is accountable for determining how a company can get funding for a project and how much funds are required to reach its completion stage. The consultant also tracks the projects and all the resources that will be used effectively to achieve the greatest levels of efficiency. A project finance consultant also tends to have years of experience performing management and financial analysis duties within a certain industry. So, in this article, we will learn about the criteria, skills required, different positions in Project Finance Jobs, and also salaries of project finance professionals and companies looking forward to such professionals.
Main Streams in Project Finance Jobs
There are two main streams in project finance jobs i.e. advisory and lending. Project Finance Group basically advises clients and/or lends funds for the debt used in huge investments.
Project Finance Individuals or Group acts as an advisor to the client. The first thing for every client is to achieve the funding goals for their project. So, the advisor will help the client arrange the fund’s requirements. The ideal situation for any client would be maximized debt period, maximized debt load, a quick financial close, and low debt pricing. The advisor will help by providing each debt funding source and prioritizing the most important elements for the client. For this purpose, an advisor’s work will involve intensive modeling, developing marketing materials such as information memorandum, and running various scenarios. After finalizing the deal structure, an advisor would knock into the banking market to raise the required financing for the project.
In this part, Project Finance Group is the lender for huge investment deals. The lending role is similar to that of huge banks in leveraged buyouts when raising debt for private equity firms, except project finance groups work with investments in infrastructure assets instead of normal companies. Overall, the giving role is still more similar to purchase-side roles than it is to sell-side investment banking jobs because the group is investing its funds. The main difference is that as a lender, the project finance group focuses heavily on the disadvantageous risk of deals, as the key purposes are capital protection and covering the debt service.
Various Jobs in Project Finance
There are various numbers of jobs in project finance, ranging from positions such as analyst to director of project and infrastructure finance. All these jobs involve infrastructure financing and various industrial projects financing over a long period. A project finance job wants a professional in this field who plans long-term cash flow rather than just analyzing and balancing the income statement and balance sheets of corporations financing the projects. The following is the description of different positions in Project Finance:
The Director Position requires candidates with experience in financial modeling, financial analysis, and debt flow. This position requires professionals who understand the varied range of factors that may influence the success of a project. So, it is important for a candidate to have experience in sales & marketing, too. In many cases, a director of project finance will need to lead a team. Therefore, a director must also possess sharpened leadership skills.
The Senior Manager of Project Finance will undertake all the necessary activities for meeting the funding requirements of projects of a company. The Senior Manager will coordinate with banks, financial institutions, PE funds, rating agencies, and other participants in the financial community to ensure timely accessibility of financing for projects at the most competitive terms. Senior Managers will also coordinate with finance providers on due diligence, term sheet negotiations, and documentation. The candidate will also work with the project development team to identify, analyze & execute the most optimum financing solutions for projects (including debt & equity).
An analyst of project finance will generally assist a director of project finance or the organization’s vice president. The candidate for analyst jobs should be able to assist in setting up various contracts. Analysts must also designate billing terms such as payments and dates. Analysts will also be accountable for making reports that examine factors such as projected earnings, risk, and cash flow.
Not every project finance job requires leadership experience. Still, it requires management skills because even an analyst who assists in creating financial structures must manage teams and contract negotiations. The responsibility level, scope, and complexity differ amongst project finance jobs since there are some key skills that professionals possess. Project finance professionals have education & experience in accounting or finance. They also have an understanding of cost management, communication management, and resource management, and professionals tend to have an aptitude for negotiation & business communication.
Skills Required for Project Finance Jobs
- Between three to five years of professional experience in infrastructure project finance learned primarily within a project finance bank or a corporate house focused on project development/financing.
- Earlier experience in financing utility projects such as water supply, waste management, etc.
- Particularly strong financial modeling skills, capable of building scratch sophisticated “project finance” financial models;
- Earlier experience in the use of VB and Macro tools with MS Excel.
- Knowledge of project finance documentation and experience handling financial closing work either as a project developer or a lender.
- Desire to work in the infrastructure sector and emphasis on long-term shareholder value creation
- Done Master in Finance preferred, with a background in mechanical/chemical/civil engineering.
- Chartered Accountant (CA) / MBA (Finance) / ICWA with 8 to 13 years of practice in project proposals, project finance management all the financial accountabilities related to Multiple Projects
Responsibilities in Project Finance Jobs
- To make inclusive financial models for several projects to deliver cash flow forecasts, scenario analyses, risk assessments, and return analyses.
- Individuals must work closely with the project development team to identify, analyze and execute the most optimum financing solution for projects, including debt & equity.
- Individuals must coordinate the drawdown/repayment formalities for debt facilities and monitor compliance with financing conditions and obligations.
- Even individuals have to coordinate with finance providers on due diligence, term sheet negotiations, and documentation.
- Coordinate with banks, financial institutions, and consultants to arrange syndication of and raise funds from various financial institutions/banks/lease finance companies.
- Evaluate capital investment proposals and calculate project/dividend IRRs, DSCRs, Sensitivity Analyses, etc.
- Compile and prepare cost and performance reports per cost accounting records rule (CARR), cost-benefit analysis, and critical analysis of cost reports, recommending corrective actions.
- Investigate historical dealings to categorize pricing, debt levels, trends, and greatest practice. Also has to conduct a financial analysis of similar companies and/or projects for benchmarking ratios and performance tracking.
Project Finance Salaries
Project Finance Professionals are still in high demand, and the salaries of project finance professionals differ as per the position, role, and years of experience. Still, project finance jobs are highly paid compared to other finance jobs. The following table will give the details of the salaries of project finance professionals:
|Role / Experience
|Basic Salary Range (£)
|Analyst 1-3 years
|40,000 – 65,000
|Associate 3-5 years
|60,000 – 90,000
|80,000 – 130,000
|120,000 – 220,000
|150,000 – 350,000
The survey found that at large investment banks, some senior project finance professionals earn basic salaries of 200,000 (€316,000). Many people had attained bonuses getting seven figures. And also, in the energy sector, project finance directors earn a median salary of 100,000 (€158,000), with a bonus of typically 100%. Even at the assistant director level, salaries are 70,000 (€111,000), and an average bonus of 80%.
Companies Hiring Project Finance Professionals
There are many companies that hire project finance professionals, as this field is still in great demand today. Various infrastructure companies, energy and power companies, large investment banks, steel companies, oil & gas companies, etc., who require a comparatively huge amount of funds for their projects compared to other sectors or companies are looking forward to project finance professionals. Following is the list of companies that are looking for project finance professionals, and they are:
- Reliance Infrastructure
- Xylem Water Solutions India
- JSW Steel
- BNP Paribas
- Reliance Power
- Shipping Corporation of India
- Tata Steel
- Goldman Sachs
Project Finance Jobs Infographics
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