5212 - INTERNATIONAL PROJECT FINANCE

This course teaches the foundations of project finance, an innovative and timely financing technique that has been used on many high-profile corporate projects. Project financing is emerging as the preferred alternative to conventional methods of financing infrastructure and other large-scale project worldwide. This course takes students through the process step by step. It covers the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix and raise the funds.
The educational activities follow a practical approach that uses the discussion of case studies to illustrate themes and aims to provide students with a thorough and comfortable ability to handle the basics of Finance.

The course has the goal to analyse the reasons why some project financing have succeeded while others have failed. Along with this presentation, the course gives detailed information on:

• Evaluation of investments - Project Financing
• Evaluation of international investment projects
• Evaluation methods and criteria
• Structured finance
• Forms of finance - equity and debt
• Financial modelling:
    - Model structure: analysis of the interaction with the financial statements 
    - Effects of the modelling choice and speculation
    - Use of real options
•  Elements of sensibility analysis, risk and uncertainty

The class notes, slides and other information will be available on the class learning space. Students are advised to scan over the class notes and slides before class. The main textbook is:

• J.D. FINNERTY, Project Financing. Asset-Based Financial Engineering, Wiley, 2000.

The supplementary textbook is:

• P.K. NEVITT, F. FABOZZI, Project Financing, Wiley, 2001.

There will be a written exam.