Illustrative course outlines

At OTC we believe in tailoring our courses to meet each client’s specific requirements.  The illustrative course outline below gives an indication of the type of course content that we’ve been asked to deliver. For more information call us on +44 20 7700 3330 or email

Strategy & Leadership Finance & Commerce Investment Banking

Project Finance

What is covered?

The course provides participants with a practical framework for the evaluation of large scale Project Finance transactions with an emphasis on credit risk analysis and credit structuring.  In particular the course aims to address:
Business risk analysis - Analysis of fundamentals and key drivers of project viability and motivations and involvement of the parties involved in a Project Finance.
Risk assessment - Key elements of cash flow analysis; Assessment of key risks (e.g. sovereign, regulatory and political ,supply, market, FX, operating, environmental, infrastructure, force majeure, completion, engineering, counterparty, interest rates and commodity prices) and mitigating alternatives
Funding and  structuring– Debt funding, project finance verses other corporate funding options, understanding equity and capital structuring, covenants and credit ratios

Who will benefit?

Participants should already be familiar with the core aspects of:-

  • Corporate financial analysis techniques
  • The main functions in Excel
  • The principal banking and Capital Markets debt products
  • Investment appraisal techniques ( e.g. IRR, NPV) and the fundamental principles of company valuation
  • Banking documentation


Course content

An overview of key issues in Project Finance
    • Overview of activity in Project Finance
    • Review of a Project Finance
    • Project Finance vs. the financing of projects
    • The Project Finance “route map”
Risk evaluation in Project Finance
    • Key risks – construction, operating and financial
    • Typical approaches to risk allocation
    • Credit analysis for power projects - credit rating
    • Case study
Financial Evaluation of Project Risks
    • Using sensitivity analysis to assess project viability
    • Sector benchmarking
    • Key Project Finance financial ratios – review of typical levels.
    • Use of nominal vs. real figures. 
    • Useful Excel functions – goal seek and data tables
    • Monte Carlo simulations
Sources of debt financing in projects: financiers and their objectives
    • Tailoring the debt to reflect the operating cashflow profile
    • Export Credit Agencies and Development Banks- multi sourced financings
    • Interest and foreign exchange management issues
    • The use of capital markets
    • Transaction review - pricing and debt structuring
    • Impact of the “credit crisis” on Project Finance
    • Case study
How equity investors assess projects - financial yardsticks used by investors
    • Main project investment appraisal techniques - uses and limitations.
    • Calculating corporate cost of capital
    • Understanding the equity investor’s approach
    • Case study
Documentation for Project Finance
    • Project Finance term sheets
    • Rationale and structure of loan documentation.
    • Representations and warranties; conditions precedent; key covenants; Events of default.
    • Intercreditor issues.
    • Third party credit support and security issues.
    • Case study
Why projects face difficulty
    • Typical reasons for failure.
    • Lessons which can be learnt from past project
    • Potential options for dealing with problem projects.
    • Review of a problem project and lessons for the future.


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