Project Finance – Large and SME Projects (2 day Program)
Knowledge of corporate finance and financial accounting
Experience in credit is preferable
§ Partly through lectures using PowerPoint, to explain the project finance characteristics, and the project formulation, financing, financial structures, and appraisal process.
§ Case studies: These will be supplemented by rigorous exercises and presentation by the participants on specific aspects. While the case studies will be by and large from Harvard Business School and John Finnerty’s book, their use will be meant for inducing clarity in analytical and conceptual rigour needed for project financing.
§ Infusion of practical approach through exercises on project formulation in India (from project promoters’ point of view), appraisal (from the lenders’ point of view) and loan syndication (from arrangers’ point of view).
§ Financial modelling for efficient bottom up approach.
§ The case studies will be a mix of highly successful as well as failed projects so that the participants understand how inadequate risk mitigation can lead to failures. These will include Indian and overseas projects.
§ The participants will be required to come prepared with specific reading / working assignments which will be given in advance.
Introduction to Project Finance
· Overview of Project Finance/ appraisal
· Project Appraisal
· Financial Projections
· Exercise and case study
Project Finance as growth strategy
· Case Study Discussion (The Mozal Project – From Harvard Business School)
Subject: Project Finance Risk Mitigation and enhancing of Value
Day 2: (cont.)
· Case Study Presentation by a group (Australian-Japan Cable – From Harvard Business School)
Subject: Project Finance as a technique for Risk Sharing and mitigation, and enhancing of value.
· Case Study Discussion (Tirupur Water Project)
Subject: Failure of Indian lenders in Project Risk mitigation: Lessons learnt
· Appraisal issues: Clearing chaff from grain, Source: Brahmani River Pellets Ltd.
SME Project Financing
· Discussion and exercises on SME project financing
1. Laundry Financial model
2. Ice cream Project
· Exercises on SME Project financing proposals
· Text Book/ Reading List and References
· Q&A / Conclusion/ Findings/ Certificate Distribution
Participation certificate would be provided to attendees