Project Finance Course

Lesson 1 • Core Structural Features

Examines the special purpose vehicle, ring-fencing, and cash waterfall mechanics. Connects structural choices to lender protection and investor returns.

Lesson 2 • Stakeholder Ecosystem Overview

Maps sponsors, lenders, offtakers, contractors, and advisors onto a single transaction. Clarifies how each party's incentives shape deal structure.

Lesson 3 • Defining Project Finance

Contrasts project finance with corporate and balance-sheet lending. Establishes the non-recourse or limited-recourse principle as the structural cornerstone.

Lesson 1 • Risk Allocation Principles

Applies the principle that risk should be borne by the party best able to manage it. Links allocation decisions to pricing, credit enhancement, and bankability.

Lesson 2 • Risk Taxonomy in Project Finance

Classifies risks into construction, market, operational, political, and force majeure categories. Provides a shared vocabulary for subsequent allocation analysis.

Lesson 3 • Contractual Risk Mitigation Tools

Reviews fixed-price EPC contracts, offtake agreements, and insurance as primary mitigation instruments. Demonstrates how contracts transfer risk between parties.

Lesson 1 • Offtake and Revenue Contracts

Examines long-term offtake, concession, and tolling agreements that underpin revenue certainty. Connects contract tenor and credit quality to debt sizing.

Lesson 2 • EPC and Construction Contracts

Analyzes engineering, procurement, and construction contract structures and key clauses. Focuses on completion guarantees, delay penalties, and defect liability.

Lesson 3 • Financing Agreements and Security

Covers loan agreements, intercreditor deeds, and security packages including share pledges and account charges. Links documentation to enforcement rights.

Lesson 4 • The Contractual Framework

Introduces the suite of agreements linking sponsors, lenders, contractors, and offtakers. Shows how contracts interlock to create a coherent security package.

Lesson 1 • Debt Structuring and Sculpting

Models debt drawdown, repayment sculpting to cash flow, and reserve account mechanics. Links debt service to the annual debt service coverage ratio.

Lesson 2 • Revenue and Cost Projections

Constructs revenue schedules from volume, price, and availability assumptions. Builds operating cost, maintenance, and lifecycle expenditure forecasts.

Lesson 3 • Scenario and Sensitivity Analysis

Designs base, upside, and downside scenarios and one-way sensitivity tables. Identifies key value drivers and communicates results to credit committees.

Lesson 4 • Equity Returns and Distributions

Calculates equity internal rate of return, net present value, and distribution waterfall. Connects equity return metrics to sponsor investment decisions.

Lesson 1 • Bank Debt Instruments

Covers construction facilities, term loans, revolving credit, and standby facilities. Explains pricing, tenor, and amortization conventions for each instrument.

Lesson 2 • Project Bonds and Capital Markets

Analyzes fixed-rate project bonds, private placements, and infrastructure debt funds. Compares capital market execution with bank debt on cost and flexibility.

Lesson 3 • Multilateral and Export Credit Financing

Examines development finance institution loans, export credit agency guarantees, and blended finance. Shows how official support improves bankability in emerging markets.

Lesson 4 • Refinancing and Debt Optimization

Evaluates refinancing triggers, mini-perm structures, and capital market take-outs. Quantifies refinancing gain and its allocation between sponsors and lenders.

Lesson 1 • Credit Memorandum Preparation

Structures a credit memorandum integrating all due diligence workstreams into a credit recommendation. Covers executive summary, risk assessment, and proposed terms.

Lesson 2 • Financial Model Audit and Stress Testing

Applies independent model audit techniques and lender stress scenarios to the base case. Validates model integrity and identifies covenant breach points.

Lesson 3 • Technical and Environmental Due Diligence

Reviews independent engineer scope, environmental impact assessment, and technology risk appraisal. Connects technical findings to construction cost and schedule contingencies.

Lesson 4 • Legal and Regulatory Due Diligence

Examines permits, licenses, land rights, and regulatory approvals required for financial close. Identifies legal risks that could delay or prevent project completion.

Lesson 1 • Financial Close Mechanics

Coordinates simultaneous signing, satisfaction of CPs, and first drawdown on closing day. Manages escrow, funds flow, and post-closing obligations.

Lesson 2 • Term Sheet and Mandate Letter

Drafts and negotiates key commercial terms in a term sheet before full documentation. Explains exclusivity, market flex, and fee letter provisions.

Lesson 3 • Syndication and Loan Transfer

Explains primary syndication, sub-underwriting, and secondary market loan transfers. Covers lender consent requirements and transfer mechanics.

Lesson 1 • Early Warning and Distress Detection

Identifies leading indicators of financial stress including DSCR deterioration and cost overruns. Triggers lender intervention before covenant breach occurs.

Lesson 2 • Operational Performance Monitoring

Establishes key performance indicators, financial covenant testing, and reserve account adequacy reviews. Connects operational data to financial model updates.

Lesson 3 • Portfolio Reporting and Governance

Designs portfolio-level reporting frameworks for credit committees and investment boards. Integrates ESG monitoring into standard portfolio governance.

Lesson 4 • Restructuring and Workout Strategies

Applies debt restructuring tools including maturity extension, cash sweep, and equity cure. Evaluates enforcement versus consensual restructuring trade-offs.