October 08, 2022 - October 15, 2022
Schedule via Zoom:
October 8 & 15, 2022
8:30 am - 5:00 pm
Early Eagle Rate:
September 26, 2022
Project finance has increasingly emerged as a preferred alternative to conventional methods of financing large-scale, capital-intensive projects, from renewable energy projects, toll roads, airports, and many others. Under PPPs, project finance has been used for many infrastructure projects.
Project finance covers a host of issues that can be quite intricate and formidable; misunderstood and misapplied, these can result in project viability erosion and/or hefty cost overruns.
This substantive module attempts to untangle the intricacies of project finance and walks the participants through the entire process in a user friendly manner, from a comprehensive exploration of facts, figures and potential faux pas to the preparation of a financial package, assessment of risks, design of financing mix, and challenges in raising financing. The module likewise discusses typical underlying security support and legal documentation in project finance transactions.
Who should attend
This module is highly recommended for investment bankers, business professionals and other finance practitioners involved, one way or another, in structuring the most cost-effective means of financing their large-scale, capital intensive projects. Those familiar with or have adequate working knowledge of investment banking, financial modeling, and basic business mathematics and statistics will find this module most meaningful and beneficial.
Successful completion of this module enables the participants to:
- Gain a comprehensive understanding of project finance, its intricacies and benefits, as well as the challenges project proponents routinely face;
- Assess the viability and bankability of large-scale, capital-intensive projects;
- Identify and evaluate the potential risks associated with proposed projects;
- Appreciate the use of financial models and test the reasonableness of the assumptions used therein;
- Structure appropriate financing schemes for selected projects, including features intended to mitigate perceived risks;
- Identify sources of special financing programs offered by funding institutions that can be tapped as part of the financing package; and
- Understand the underlying security support and legal documentation typical for proposed project finance transactions.
The module, which employs lectures, interactive discussions, case studies and practical application exercises, covers the following areas:
- Project finance: definitions, rationale, intricacies, benefits and challenges
- Project finance vs. Corporate finance
- Analysis and evaluation of project viability and bankability
- Determining a project's borrowing capacity
- Risk assessment and mitigation
- Credit requirements of lenders
- Legal structure and security arrangements
- Design and development of suitable financing arrangement
Mr. Francis Chua is currently the First Vice-President and Head of the Corporate Finance Group of the Development Bank of the Philippines where he oversees the Investment Banking and Capital Markets Departments of the Bank. Through the Investment Banking Department, the team provides financial and transaction advisory services to Government and private sector clients in relation to public-private partnerships, joint-ventures, privatizations, and other similar transactions; as well as structuring and syndicating project finance transactions.
Prior to heading the Corporate Finance Group, he led the Investment Banking Department where he served as the team leader of the transaction advisory team for several key infrastructure projects of the Government including the successful tenders of the NAIA Expressway PPP and the LRT1 Cavite Extension, Operations and Maintenance PPP. He was also part of the transaction team for the syndicated financing of the Tarlac-Pangasinan-La Union Expressway (TPLEX) and the syndicated financing in relation to the privatization of Petron Corporation. FVP Chua has been with DBP since 2007 and is a product of the DBP’s multi-awarded Management Associates Program.
Mr. Chua holds an MSc in International Development: Development Finance from the University of Manchester, United Kingdom and dual Bachelor’s Degrees in Development Studies and Economics with Minors in Development Management and Chinese Studies from the Ateneo de Manila University. He also undertook executive courses from the Renewables Academy AG on Green Banking: Renewable Energy Financing; from the Kennedy School of Government, Harvard University, USA on Public-Private Partnerships in Infrastructure; and from the Asian Institute of Management on Project Planning, Management, and Development, and on Practical Project Management in Public Investment from the same institute.