Cover image for Principles of Project Finance.
Principles of Project Finance.
Title:
Principles of Project Finance.
Author:
Yescombe, E. R.
ISBN:
9780080514826
Personal Author:
Physical Description:
1 online resource (359 pages)
Contents:
Front Cover -- Principles of Project Finance -- Copyright Page -- Contents -- Chapter 1. Introduction -- Chapter 2. What Is Project Finance? -- 2.1 Development of Project Finance -- 2.2 Features of Project Finance -- 2.3 Project Finance and Privatization -- 2.4 Project Finance and Structured Finance -- 2.5 Why Use Project Finance? -- Chapter 3. The Project Finance Markets -- 3.1 Commercial Banks -- 3.2 Bond Issues -- 3.3 Mezzanine and Subordinated Debt -- 3.4 Lease Finance -- 3.5 Vendor Finance -- 3.6 Public-Sector Finance -- Chapter 4. Project Development and Management -- 4.1 Sponsors and Other Investors -- 4.2 Project Development -- 4.3 The Role of Advisers -- 4.4 Joint-Venture Issues -- 4.5 The Project Company -- 4.6 Public Procurement -- Chapter 5. Working with Lenders -- 5.1 Commercial Banks -- 5.2 Bond Issues -- 5.3 Loans versus Bonds -- 5.4 The Roles of the Lenders' Advisers -- Chapter 6. Project Contracts: (1) The Project Agreement -- 6.1 Offtake Contract -- 6.2 Concession Agreement -- 6.3 Term of Project Agreement -- 6.4 Control of Project Design and Construction, Contracts, and Financing -- 6.5 Compensation for Additional Costs -- 6.6 Force Majeure -- 6.7 Step-in by the Offtaker or Contracting Authority -- 6.8 Termination of the Project Agreement -- 6.9 Effect of Debt Refinancing or Equity Resale on the Project Agreement -- Chapter 7. Project Contracts: (2) Ancillary Contracts -- 7.1 EPC Contract -- 7.2 Operation and Maintenance Contract(s) -- 7.3 Fuel or Other Input Supply Contract -- 7.4 Permits and Other Rights -- 7.5 Government Support Agreement -- 7.6 Insurance -- 7.7 Direct Agreements -- Chapter 8. Commercial Risks -- 8.1 Categories of Project Finance Risk -- 8.2 Risk Evaluation and Allocation -- 8.3 Analysis of Commercial Risks -- 8.4 Commercial Viability -- 8.5 Completion Risks.

8.6 Environmental Risks -- 8.7 Operating Risks -- 8.8 Revenue Risks -- 8.9 Input Supply Risks -- 8.10 Force Majeure -- 8.11 Contract Mismatch -- 8.12 Recourse to the Sponsors -- Chapter 9. Macroeconomic Risks -- 9.1 Inflation -- 9.2 Interest Rate Risks -- 9.3 Exchange Rate Risks -- Chapter 10. Political Risks -- 10.1 Projects and Politics -- 10.2 Classification of Political Risk -- 10.3 Currency Convertibility and Transfer -- 10.4 Expropriation -- 10.5 War and Civil Disturbance -- 10.6 Change of Law -- 10.7 Quasi-political Risks -- Chapter 11. Political Risk Guarantees, Insurance, and Finance -- 11.1 Mitigation of Political Risks -- 11.2 Export Credit Agencies -- 11.3 Export Credits -- 11.4 Untied Cover and Financing -- 11.5 ECA Structures and Products -- 11.6 International Financing Institutions -- 11.7 Private-Sector Insurance -- Chapter 12. Financial Modeling and Evaluation -- 12.1 Model Inputs -- 12.2 Model Outputs -- 12.3 Macroeconomic Assumptions -- 12.4 Project Costs and Funding -- 12.5 Operating Revenues and Costs -- 12.6 Loan Drawings and Debt Service -- 12.7 Accounting and Taxation Issues -- 12.8 Equity Returns -- 12.9 Debt Cover Ratios -- 12.10 The Base Case and Changes in Assumptions -- 12.11 Sensitivity Analysis -- 12.12 Investors' Analysis -- Chapter 13. Financial Structuring and Documentation -- 13.1 Debt:Equity Ratio -- 13.2 Debt Service -- 13.3 Drawdown of Debt and Equity -- 13.4 Interest Rate and Fees -- 13.5 Control of Cash Flow -- 13.6 Debt Prepayments and Refinancing -- 13.7 Security -- 13.8 Financial Close-Conditions Precedent -- 13.9 Representations and Warranties -- 13.10 Covenants -- 13.11 Events of Default -- 13.12 Waivers, Amendments, and Enforcement on Default -- 13.13 Intercreditor Issues -- Glossary and Abbreviations.
Abstract:
This introduction for practitioners offers a balanced view of project financing, integrating legal, contractual, scheduling, and other areas that participate in large multiparty projects, large single-asset purchases, and broad-based financing programs for fleets of assets. It mixes theories and case studies but avoids becoming too oriented toward applications in any one particular industry. It focuses on the concepts and techniques required by project finance people without being overly academic or beset by case studies. The author, who has a legal background, recognizes that some legal information is necessary, but he doesn't attempt to write a law book. Project Finance refers to the techniques of financing projects which are dependent on cash flows for repayment, as defined by the contractual relationships within each project. By their very nature, these types of projects rely on a large number of integrated contractual arrangements for successful completion and operation. Project finance is an element within the larger field of project management. Many organizations around the world utilize project management to enable innovative processes, to plan, organize, and control strategic initiatives, to monitor enterprise performance, to analyze significant deviations, and to forecast their impact on the organization and project(s). Project management can be found in many industries today, from construction and information systems to healthcare, financial services, education, and training. Key Features: -A comprehensive and authoritative guide to the theory and practice of project finance. -An international scope, covering projects in both the developed and developing worlds. -The book describes and explains: -Sources of project finance. -Typical commercial contracts (such as those for construction of the project and sale of its product or services)

and their impact on the project finance structure. -Project finance risk assessment from the points of view of lenders, investors, and other project parties. -Structuring the project finance debt. -The key issues in negotiating a project finance debt facility. -Extensive glossary and cross-referencing. -No prior knowledge of project finance or financing techniques is assumed.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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