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Applied

Project and
Infrastructure
Finance

Organised By - Marketing Partner -

The only executive workshop on project finance combining the strong theoretical
concept with the blend of practical issues

Number of Case Lets to be discussed: Number of Case Studies to be discussed:

6 case lets will be discussed during the delivery 2 national
of the session to reinforce the concepts 2 international
Applied Project and
Key Take away
Infrastructure Finance At the end of the 2 day session the
participants will gain an understand-
6th - 7th May | New Delhi ing of the banking products availa-
ble in India in the area of project fi-
nance. This workshop is only of its
13th - 14th May | Mumbai
kind which bridges the gap between
lender and borrower as issues from
both sides are discussed.

Hands on exercise in MS Excel: The
+ programme is the only of its kind
where in built excel applications are
+
used in a scientifically designed MS
Excel sheets.

Program Objective
Project Finance involves the raising of funds to finance an economically separable capital investment project
in which the providers of the funds look primarily to the cash flow from the project as the source of funds to
service their loans and provide the return of and a return on their equity invested in the project.

This is a practical course that provides executives, whether as financiers, sponsors, or professional support, an
opportunity to understand the risk return character of limited recourse projects from multiple perspectives.
Case studies span a variety of sectors and geographical regions.

The programme not only deals with the issues at the present, it helps participants to build up the future models
of financing thus fostering the innovative concepts of the project financing.

Faculty Profile Key Benefits
A seasoned banker and academician would conduct the Doing this course will help participants to -
workshop. He brings a rare combination of academician and
 Articulate what project financing is.
working professional. He is a visiting faculty to IIM Calcutta and
has conducted over 1000 training hours and training over 500  Define the roles and objectives of the
trainees in the same topic. various participants

 Assess the risks of the transaction from
Who Should Attend? different viewpoints

Management and Finance Professionals from:  Recite numerous examples and apply
them to everyday
 Oil, Gas, Power and Renewable Sectors
 Know the basic term sheets, structures
 SEZs, Roads, Ports and Airport Sectors
and legal documentation
 Industrial and Manufacturing Sector

 Management and Business Consulting Firms

 Financial Institutions

www.optiriskindia.net
Applied Project and

Infrastructure Finance Curriculum

Session One Session Two
Different types of financing available in the market : Determination of Project Cost:
 Objective: To make participants aware of the dif-  Objective: To build up the correct concept of
ferent financing products available in the market project cost. In the market, there are lot of ambi-
 Takeaway for participant: Building up the com- guity about determination of project cost. To
plete picture of different available financial prod- make them understand clearly is the first step for
ucts in the Indian Market project financing. Under this topic , it would be
cleared in detail
Difference between Term Loan and project financ-
ing :  Take away for participants: Participants would be
able to build up a complete understanding of
 Objective: To make participants aware the real project cost for different industries .
meaning of project finance and its difference
from the traditional term loan financing. Linkage between working capital assessment and
project financing :
 Take away for participants: Participants would be
able to find out different parameters to be  Objective: To build up concept to see the project
looked for term loan assessment and Project Fi- financing as totality not in isolation .
nance assessment.
 Take away for participants: Participants would be
Difference between Working capital financing and able to understand the importance of working
project financing : capital linkage in project financing .
 Objectives: To make participants aware of the Arrival at the appropriate level of working capital re-
different assessment process of these two types of quirement :
financing.
 Objective : To understand the concept of arriving
 Take away: Understanding the linkage between at the techniques of working capital requirement
working capital financing and project financing. for the entire project and importance of it in the
Definition of Infrastructure financing : overall evaluation of the project

 Objectives: Understanding the concepts of infra-  Take away for participants : Participants would
be able to comprehend the entire process being
structure financing and its characteristics.
followed in an organisation for assessment of
 Take away: Participants would be able build up a working capital requirement .Participants would
complete understanding of the Infrastructure fi- be also able to calculate the mechanism of cal-
nance from different regulators perspectives and culating the same in Ms Excel
importance of proper classification. Means of finance :
Methods of Infrastructure projects being awarded in  Objective : To understand the meaning of means
India : of project finance.
 Take away for participants : Participants would
 Objectives: Understanding the concept of differ-
be able to under stand the concept and mean-
ent methods of execution of infrastructure pro- ing of means of finance. This would help them to
jects in India and rationality of a particular meth- correlate the means of finance with project eval-
ods. uation steps.
 Take away: Complete understanding at the fun- Different sources of means of finance :
damental level the concept of the different  Objective : To make the participants aware differ-
methods of infrastructure finance in India and ra- ent sources from which project financing need
tionality of a particular method of executions . can be met .

www.optiriskindia.net
Applied Project and

Infrastructure Finance Curriculum

 Take away for participants : Participants would be able to know the different sources of finance and this
would help them to raise fund at a better cost .
Concept of margin money :
 Objective : To understand the concepts of different types of margin money and to break the wrong con-
cepts prevalent in the marked associated with margin money.
 Take away for participants : Different forms of margin money and use of appropriate margin money to
reduce the cost of fund for project. Application of subordinate debt in the margin money .
Tying up of working capital :
 Objectives : Creating awareness about the practical aspects of tying up of working capital .
 Take away for participants : Understanding the entire practical issues associated with tying up of working
capital with lenders prevalent in India . This would reduce the time required for such tying up.

Session Three  Take away for participants : Preparation of dis-
counted cash flow for any time period and for
Techniques of financing forecasting : any frequency.
 Objectives : To make them aware the steps fol- Calculation of appropriate discount rate :
lowed in financial forecasting in Ms Excel.
 Objective : How to calculate appropriate dis-
 Take away for participants : Participants would count rate in practice .
be able to prepare the financial forecasting with-
 Take away for participants : Calculation of ap-
in shortest possible time by way of creating effi-
propriate discount rate for projects to be carried
cient Excel spreadsheet.
out by large company , small and medium com-
One case study along with MS Excel exercise would pany in Indian perspective.
be carried out by the trainer. The participants would
be provided hand holding for preparation of finan- Session Five
cial forecasting of a project from a case study by in-
Weighted Average Cost of Capital (WACC) :
corporating relatively moderate level of complexity
of a project.  Objective : Calculation of cost of capital for di-
versified business interest companies .
Session Four
 Take away for participants : Use of appropriate
Project Evaluation techniques : Concept of Net Pre- WACC for project evaluation in a diversified busi-
sent Value & IRR : ness interest companies.
 Objective : To understand the NPV and IRR con- Application of WACC in discount rate :
cepts clearly from practical point of view and
 Objective : Use of WACC to find out NPV and IRR
how it is applied in project evaluation process.
of the project .
 Take away for participants : Use of NPV and IRR
 Take away for participants : Establishing concep-
concepts in project evaluation followed in prac-
tual and practical linkage between WACC , dis-
tice .
count rate and evaluation methodology .
How to calculate Discounted Cash flow :
Capturing uncertainty in project appraisal :
 Objective : To use the appropriate discount rate
 Objective : Making participant understand the
for preparation of discounted cash flow.
importance of capturing uncertainty in the pro-
ject appraisal which are not being followed very
diligently.

www.optiriskindia.net
Applied Project and

Infrastructure Finance Curriculum

 Take away for participants : Conceptual understanding of uncertainty and methods of handling them in
the real life.
Methods of uncertainty capturing in project finance :
 Objective : Creating awareness of different accepted methods to capture uncertainty associated with a
project

 Take away for participants : Application of methods of capturing uncertainty in real life situation.

Session Six : Session Eight
Sector specific discussions of Infrastructure : Port Sector :
Power Sector :  Objectives : To understand the important regula-
 Objectives : To understand the main regulations tory aspects of the port ( both airport and sea
of the power sector and risks associated with the port ) .
power sector financing  Take away : Building up the concept of the inno-
 Take away : Broad understanding of the power vative methods of financing of port
sector in India and their methods of financing Urban Infrastructure :

Session Seven  Objectives : Generating awareness about major
issues related to urban infrastructure projects
Road Sector :
 Take away : Different methods of financing for
 Objectives : To understand the newer methods of
the urban infrastructure projects
financing of the road sectors
Case let : Mumbai Metro Railway project one and
 Take away : Broad understanding of the risks and
Delhi International Airport Project cases and learning
methodology involved in the road sector financ-
from them
ing

A detail case analysis of a road project in India and
comparison of the same with the project in Mexico so
that the participants can find out the innovation re-
quired for the financing of the road project in India.
During this case studies , we shall discuss in detail
about the different provisions of the Concession
Agreement and proper methodology adopted for
risk mitigation .

www.optiriskindia.net