Course Objectives:

 As the trend for energy project funding moves away from utility rebate programs and toward other types of financing, there is a growing need for guidance on the options now available. This is a 5-day practical course that provides a resource to those seeking to employ innovative financing methods. It examines and assesses the viewpoint of oil and gas producers and users, utilities, bank lenders and other credit providers, like equipment vendors or bondholders, are examined in detail. In many transactions, credit enhancement techniques can be very important as well. Thus traditional Export Credit Agency, Multi- and Bi-lateral Agency support, as well as tailored private sector political and commercial shifting mechanisms and programs are explained.

Course Goal

To enhance the participant’s knowledge, skills, and abilities necessary to employ innovative financing methods in energy projects.

Course Objectives

By the end of this course the participant will be able to:

1. Determine steps in a project financing
2. Identify risk and allocate finance in oil gas and power projects
3. Determine sources of finance:
4. Understand cash flow modeling and credit assessment
5. Be familiar with traditional and contemporary sources of finance
6. Determine sources of risk support
7. Understand the cross-border leasing in project finance

Course Outline:

• Introduction: International Oil and Gas Project Finance Today

1. The Players and Their Roles
2. What is the Appeal of this Approach?
3. Steps in a Project Financing

• Risk Identification and Allocation in Oil Gas and Power Project Financing:

1. Different Approaches/Differing Risks
2. Pipelines
3. Field Development and Platforms
4. Production Facilities
5. Refineries
6. Petrochemical Plants
7. Power Plants

• Sources of Finance:

1. A Financing Checklist
2. Domestic Borrowing vs. Loans from
3. International Banks
4. International Capital Markets: Eurobonds, Private Placements
5. Yankee Bonds
6. Export Credit Support for Loans and Bonds
7. Specialized Agencies: IFC and others
8. Leasing
9. Equity from Project Sponsors and Others
10. Derivatives Usage

• Workshop: Cash Flow Modeling and Credit Assessment

1. Cash Flow Analysis
2. Building a Model: Forecasting Techniques and Limitations
3. Perspective of the Sponsor vs. the Lenders
4. Sensitivity Analysis

• Traditional and Contemporary Sources of Finance:

1. Domestic and international bank loans
2. Syndicated Loan Financing: Primary and Secondary Distribution
3. Pricing, Flexibility, Timing
4. What Security Do Banks Want?
5. Offshore Accounts and Trustees
6. Mortgages on Fixed Assets /Contract Assignments

• Projects Financed in the Capital Markets

1. Capital Markets and Oil and Gas Transactions:
2. Rule 144A, Eurobond Financing, Mezzanine Finance
3. Infrastructure Investment Funds
4. Other Sources of Credit Enhancement: Mono-line Insurers
5. Rating Agency Criteria
6. Crude Oil Export Receivables Securitization
7. Using ECAs to Access the Capital Markets

• Sources of Risk Support:

1. Using Export Finance Techniques in Project Finance
2. Guarantees and Insurance
3. Funding and Interest Equalization
4. Bank Incentives Inherent in ECA Programs
5. Costs and Availability

• Cross-Border Leasing in Project Finance

1. Objectives and Structures
2. Costs and Calculations
3. Applications in Project Finance
4. Example: Using Lease Finance for a Power Plant

Who Can Benefit?

Project finance managers, credit managers, securities managers, corporate banking officers, financial analysts, strategic planners, senior executives, legal advisors, business analysts, and consultants