Project Financing Advanced Module: Diploma Program in Corporate Finance
April 27, 2019 - May 11, 2019
9:00am - 5:00pm
Project financing has increasingly emerged as the preferred alternative to conventional methods of financing large-scale, capital-intensive projects, from pipelines and refineries to power-generating facilities, hydroelectric projects and many others. Even the government has used it to finance many of its infrastructure projects.
Project financing 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 three-day module attempts to untangle the intricacies of project financing 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 the financial plan, assessment of risks, design of financing mix and raising of funds. The module likewise discusses the process' underlying security support and legal documentation.
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 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 financing, 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;
- Develop financial plans 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 for proposed projects.
The module, which employs lectures, interactive discussions, case studies and practical application exercises, covers the following areas:
- Project financing: definitions, rationale, intricacies, benefits and challenges
- Project financing vs. direct financing
- Analysis and evaluation of project viability and bankability
- Preparation of cash flow projections and their use to measure expected rates of return
- Determining a project's borrowing capacity
- Risk assessment and mitigation
- Credit requirements of lenders
- Legal structure and security arrangements
- Financial plan preparation
- Design and development of suitable financing arrangement
Mr. Bonnie Banzon
is currently the Director and Head of Project Finance of BPI Capital Corporation, a wholly owned subsidiary of the Bank of the Philippine Islands.
He has over 30 years of investment banking experience, having worked previously with Security Bank, Private Development Corporation of the Philippines and CityTrust Banking Corporation.
At BPI Capital Corporation, he worked on several land mark deals in the Power, Energy, Renewables and Private Public Partnerships. Among these transactions is the first climate bond issue in the Emerging Markets in Asia, which was partially guaranteed by the Asian Development Bank and the Credit Guarantee and Investment Facility, a Trust Fund of the ADB. He also worked on a Run of River renewable project, which won the 2015 Renewable Deal of the Year from Alpha Southeast Asia and the first mega power deal in the Philippines (slightly less than $ 1 billion), which won the Project Finance Deal of the Year from 4 prestigious international publications.
More recently, he is working on several PPP projects, including the Regional Airports, LRT 2 and Regional Prison. The BPI Group previously led and participated in three (3) Awarded PPP projects, namely the Automatic Fare Collection System, School Infrastructure Project and Mactan-Cebu International Airport Passenger Terminal Building.
Mr. Banzon has Master of Business Administration degree from the Ateneo Graduate School of Business and bachelor’s degree in Economics from the School of Economics of the University of the Philippines Diliman.