Project Finance

Project Finance

by Paul D. Clifford
Released December 2020
Publisher(s): Wiley
ISBN: 9781119642466

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Book description

Tackle infrastructure development projects in emerging markets with confidence

In Project Finance: Applications and Insights to Emerging Markets Infrastructure, distinguished professor and author Paul Clifford insightfully applies the fundamental principles of project finance structuring to infrastructure investments in emerging markets.

Using leading emerging market case studies to illuminate the underlying themes of the book, the author provides a practitioner’s perspective and incisive analysis of concepts crucial to a complete understanding of project finance in emerging markets, including:

· Risk management

· ESG and impact investing

· The emergence of new global multilateral development banks

· China’s Belt and Road Initiative

Project Finance bridges the gap between theoretical infrastructure development, investment, and finance and the implementation of that theory with instructive and applicable case studies. Throughout, the author relies on a grounded and quantitative approach, combining the principles of corporate finance with straightforward explanations of underlying technologies, frameworks, and national policies.

This book is an invaluable resource for undergraduate and graduate students in finance, as well as professionals who are expected to deal with project and infrastructure finance in emerging markets.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Preface
  6. Acknowledgments
  7. CHAPTER 1: Principles and Application of Project Finance
    1. ORIGINS AND HISTORY OF PROJECT FINANCE
    2. WHY SPONSORS USE PROJECT FINANCE
    3. PROJECT FINANCE—ASSET CLASS PERFORMANCE
    4. GLOBAL INFRASTRUCTURE OUTLOOK
    5. THE INFRASTRUCTURE GAP IN EMERGING MARKETS
    6. FOCUS—ASIA INFRASTRUCTURE NEEDS
    7. ENDNOTES
  8. CHAPTER 2: Project Finance—Risk Analysis and Mitigation
    1. COMMERCIAL VERSUS CONTRACT VIABILITY
    2. SPONSOR RISK
    3. POLITICAL RISK
    4. CONSTRUCTION AND COMPLETION RISK
    5. OPERATION AND MAINTENANCE RISK
    6. SUPPLY RISKS
    7. RESERVE RISK
    8. SALES/OFFTAKE RISK
    9. APPROVALS AND PERMITS
    10. SOCIAL AND ENVIRONMENTAL CONSIDERATIONS
    11. FINANCIAL RISKS
    12. FORCE MAJEURE RISK
    13. ENDNOTES
  9. CHAPTER 3: Project Finance Agreements and Loan Documentation
    1. CONSTRUCTION CONTRACTS IN PROJECT FINANCE
    2. OPERATIONS AND MAINTENANCE CONTRACTS IN PROJECT FINANCE
    3. OFFTAKE CONTRACTS/CONCESSION AGREEMENTS
    4. SUPPLY CONTRACTS
    5. PROJECT FINANCE LOAN DOCUMENTATION
    6. KEY LENDER PROTECTION MECHANISMS AND STRATEGIES FOR NEGOTIATING FINANCE AGREEMENTS
  10. CHAPTER 4: Risks and Challenges of Project Financing in Emerging Markets
    1. TRACK RECORD OF PROJECT FINANCE IN EMERGING MARKETS—THE ASIAN IPP EXPERIENCE
    2. CURRENCY MISMATCH—LESSONS LEARNED FROM THE ASIAN CURRENCY CRISIS
    3. HOW THE ASIAN CURRENCY CRISIS TRANSFORMED THE APPROACH TO PROJECT FINANCE
    4. ROLE OF MULTILATERAL, BILATERAL DEVELOPMENT BANKS, AND EXPORT CREDIT AGENCIES
    5. STAKEHOLDER ALIGNMENT ISSUES
    6. MITIGATING POLITICAL AND SOVEREIGN RISKS
    7. ENDNOTES
  11. CHAPTER 5: Sources of Financing for Emerging Markets
    1. MULTILATERAL DEVELOPMENT BANKS (MDBS)
    2. BILATERAL DEVELOPMENT BANKS (BDBS)
    3. EXPORT CREDIT AGENCIES (ECAS)
    4. COMMERCIAL BANKS
    5. POLITICAL RISK INSURANCE MARKET—BREACH OF CONTRACT AND NON-HONORING OF FINANCIAL GUARANTEES
    6. PROJECT BONDS
    7. EQUIPMENT SUPPLIERS AND FINANCING
    8. INSTITUTIONAL LENDERS (INSURANCE COMPANIES, INFRASTRUCTURE FUNDS, PENSION FUNDS, PRIVATE EQUITY, AND SO FORTH)
    9. STRATEGIES FOR MULTI-SOURCED FINANCING IN EMERGING MARKETS
    10. ENDNOTES
  12. CHAPTER 6: Financial Structuring and Debt Sizing
    1. THE BORROWER/SPONSOR OBJECTIVES
    2. LENDERS' OBJECTIVES
    3. DEBT SIZING AND SCULPTING
    4. FINANCIAL STRUCTURING—DEBT SIZING AND LOAN AMORTIZATION
    5. LENDER RATIOS FOR DEBT CALIBRATION AND STRESS TESTING
    6. CASH TRAPS AND SWEEPS
    7. ENDNOTES
  13. CHAPTER 7: Environmental and Social Governance (ESG)
    1. SUSTAINABLE INFRASTRUCTURE PROJECT FINANCE AND INVESTING
    2. EQUATOR PRINCIPLES
    3. MULTILATERAL DEVELOPMENT BANKS AND ESG FRAMEWORKS
    4. IFC IMPACT INVESTING PRINCIPLES
    5. GREEN BONDS
    6. SUSTAINABILITY PROJECT FINANCING AND UN SOCIAL DEVELOPMENT GOALS (SDGS)
    7. UNLOCKING INSTITUTIONAL CAPITAL TO MEET EMERGING MARKET SDGS
    8. ENDNOTES
  14. CHAPTER 8: Emerging Markets, Project Finance Bonds, and Local Capital Markets
    1. PROJECT BONDS VERSUS PROJECT LOANS
    2. PROJECT BONDS INVESTOR BASE AND MARKET LIQUIDITY
    3. LOCAL CURRENCY PROJECT BONDS AND PARTIAL CREDIT GUARANTEES/INSURANCE WRAPS
    4. ENDNOTES
  15. CHAPTER 9: China's Belt and Road Initiative
    1. BACKGROUND AND SCOPE OF THE BELT AND ROAD INITIATIVE
    2. CHINA'S FINANCING STRATEGY FOR BRI INFRASTRUCTURE DEVELOPMENT
    3. EMERGENCE OF NEW MULTILATERAL DEVELOPMENT BANKS—FOCUS ON THE ASIA INFRASTRUCTURE INVESTMENT BANK
    4. ENDNOTES
  16. CHAPTER 10: Project Finance Market Developments and Finance Structures
    1. MINI-PERM FINANCING STRUCTURES
    2. BACK-LEVERED FINANCINGS FOR RENEWABLE ENERGY PROJECTS
    3. INFRASTRUCTURE GUARANTEE PRODUCTS—BOND AND PRIVATE CAPITAL CREDIT ENHANCEMENT
    4. ENDNOTES
  17. Bibliography
  18. Index
  19. End User License Agreement

Product information

  • Title: Project Finance
  • Author(s): Paul D. Clifford
  • Release date: December 2020
  • Publisher(s): Wiley
  • ISBN: 9781119642466