Skip to content Skip to navigation

SMU Advanced Certificate: Corporate Banking Solutions (IBF Level 2)

Module 1: Project Financing 

Learning Objectives
  • Know the key characteristics and applicability of project finance
  • Identify key project risks – commercial, macroeconomic & political
  • Distinguish the parties involved and the type of project relationships
  • Learn how risk are allocated between parties in a public-private partnership
  • Develop suitable structures to mitigate financing risks
  • Hedge financial risks with appropriate instruments

1. Introduction

  • Landscape for project finance in Asia
  • Characteristics of project financing
  • Different phases of project finance
  • Objectives of project finance

2. Project Risk Assessment

  • Identify key project risks
  • Commercial risks: project risk
  • Macro-economic risks: financial risk
  • Political risks: country risk
  • Assess risk rating
  • Key rating factors
  • Mapping credit matrix to risk rating

3. Managing Relationships & Risk Allocation

  • Parties in project finance transactions
  • Structure, functions & roles
  • Types of project relationships
  • Concession agreements
  • Public-private partnership (PPP)
  • Offtake Contracts
  • Supply Assurance
  • Risk allocation in a PPP project
  • Case studies

4. Developing Suitable Financing Structure

  • Determine financing quantum & tenor
  • Hedge foreign exchange & interest rate risks
  • Build a financial model
  • Case studies 

Last updated on 29 Jan 2018 .