Advanced project financing : structuring risk

Preface Author biography List of case studies List of exhibits Introduction Project finance's origins Project finance defined Project finance structuring Advantages Disadvantages Summary Chapter 1: Structuring stages Technical feasibility stage Financial feasibility stage Market feasibility stage Use in mergers and acquisitions Project concept Summary Chapter 2: Funding sources Local currency funding Capital markets Developers Mezzanine Merchant financing Islamic lending Governments - public-private partnerships Leasing Commodity-based lending Equity Summary Chapter 3: Cashflows Modelling aspects Cashflow controls Modelling cashflows Summary Chapter 4: Financial advisers Advantages and disadvantages Need for an adviser Advisory costs Who are the financial advisers? Summary Chapter 5: Credit ratios Debt service cover ratio Residual Interest cover ratio Principal cover ratio Present value ratios Loan life ratio (LLR) Project life ratio (PLR) Residual life ratio (RLR) Debt:Equity ratio (D:E) Payback Discount rate Leveraged IRR Choice of discount rate Multi-tranche ratios Accounting ratios Summary Chapter 6: Risk systems Insurance Statistical Risk modellers Checklist Contractual/Jigsaw Project finance Chapter 7: Sector profiles Sector features Analysis by sector Summary Chapter 8: Structures Risk Risk division Document matrix Interest Principal Drawdown styles SPV Mezzanine Subordinated debt Working capital Bridge loans Multi-tranche Commodity funding Contract structures Trigger structures Financed structures Study structure Avoided Summary Chapter 9: Due diligence Systematic review The feasibility process Selection of experts/engineers Customary reviews Telecoms subscriber studies Common sense Chapter 10: Supply risk Contract structures Trigger structures Financed structures Study structures Structures Summary Chapter 11: Market risk Market-price Contract structures Trigger situations Study techniques Summary Chapter 12: Foreign exchange risk What percentage to structure? Contract structures Parallel loans Barter Trigger structures Avoided Study Summary Chapter 13: Operating risk - technical component Contract structures Trigger structures Financed structure Study structures Summary Chapter 14: Operating risk - cost component Contract structures Trigger structures Financed structures Study structure Avoided Summary Chapter 15: Operating risk - management component Contract structures Trigger structures Study Summary Chapter 16: Environmental risk Contract structures Trigger structures Financed structures Study Avoided Summary Chapter 17: Infrastructure risk Contract structures Studies Summary Chapter 18: Force majeure risk Acts of nature Acts of man(kind) Acts of government Impersonal acts Trigger structures Studies Summary Chapter 19: Completion risk Completion test Contract structures Trigger structures Financed structures Study approach Sector completion protocols Summary Chapter 20: Engineering risk Design/calculations Study Chapter 21: Political risk Definitions Government supports Treaty protection Contract structures Trigger structures Financed structures Study sources Avoided Chapter 22: Participant risk Sponsor pre-completion SPV Trigger structures Study route Avoided Summary Chapter 23: Interest rate risk Contract structures Trigger structures Summary Chapter 24: Syndication risk Roles Choice of banks and placements parties Pricing Disclosure Contract structures Study structures Chapter 25: Legal risk Legal regime Concept of law Enforcement The courts Solicitors/lawyers Contracted structures Trigger structures Study structures Avoided Summary Appendix 1: Differing definitions M&A Securitisation Lawyers Project financiers Appendix 2: Typical owner controlled insurance programme (OCIP) Section 1 Owner's project company insurance coverages - construction phase Section 2 Contractor's insurance requirements - construction phase Section 3 Owner's project company insurance coverages - operational phase Glossary Index