Financial Acumen and Financial Project Management
Course Info
Code PF1-129
Duration 5 Days
Format Classroom
Course Summary
Financial project management is an important role within any organisation. Finances are the key factor in any business’ success. It is the responsibility of finance management to ensure that finances are correctly managed, and that any outstanding debts are being paid accordingly. Project financing is the long-term financing within an organisation and is often a necessity to sustain its longevity, especially for industrial projects or public services.
A person with good financial acumen must have a detailed understanding of financial management principles to ensure decisions are made swiftly and effectively and remain within the allotted budget requirements. They would also need to have skills in secure document management, accounting and cashflow management.
Financial project management and financial acumen are intertwined. Project management at the minimum requires the skillset of someone with good financial acumen. Furthermore, they would need the ability to assess long-term goals, have strong communicational skills to develop reliable relationships with lenders and sponsors, and be competent in assessing and managing potential risks.
In recent times, financial stability has become much harder to predict and ensure, making effective finance project management even more crucial for businesses.
- To analyse the purpose of project financing techniques.
- To expand the understanding of project financing.
- To examine the key sources of limited-resource debt.
- To reflect on a lender’s approach to risk.
- To review how project models are utilised to optimise debt amounts, maturity, and re-payment.
- To evaluate the different methods of financing.
- To identify the different types of debt.
- To understand how key risk factors drive structure and loan pricing.
- To build project models and utilise them to balance equity against debt.
This course is designed for anyone responsible for project finance management within an organisation. It would be most beneficial for:
- Financial Advisors
- Creditors
- Finance Managers
- Project Managers
- Project Sponsors/Lenders
- Financial Analysts
- Financial Auditors
- Operations Managers
- Senior Consultants
- Legal Representatives
This course uses a variety of adult learning styles to aid full understanding and comprehension. Participants will review real-world documents relating to project finance, such as term sheets and information memorandums, to highlight what typically needs to be included in these and how to write them successfully.
They will be presented with the necessary tools needed to develop their knowledge through financial exercises where they are reviewing documents of project finance. They will be able to identify key factors of successful finances and projects where issues had risen. Participants will then be able to create their own solutions aligned with the agreed upon contracts. In group discussions, they will demonstrate their theories and assess as a group whether they would be effective.
Course Content & Outline
- Defining what project finance is.
- Differentiating project finance and financing a project.
- The origins and principles of project finance.
- The advantages and disadvantages of project finance.
- Those involved and their interests.
- Introducing Ownership structures.
- Key project contracts.
- The vitality of financial advisors.
- The financial feasibility study.
- The purpose and benefits of debt restructuring.
- How to effectively write an information memorandum.
- Debt underwriting and syndicating.
- Financial-close and post-close monitoring.
- Understanding the risk and reward objectives of lenders and sponsors.
- Balancing equity and debt.
- Different types of debt – secured and unsecured.
- Structural and pricing influences.
- Crucial ratios – annual debt service, loan life and project life cover.
- Assessing the types of risks – macro, completion and operational.
- Navigating the bond markets.
- Credit enhancement through guarantees.
- The concept of Islamic finance.
- Understanding the political insurance market and the risks associated.
- Export credit agencies.
- Multilateral agencies and developmental banks.
- Sponsor co-financing.
- The importance of a term sheet.
- A term-sheet benefits – legal status, binding/non-binding aspects.
- Security and credit rights.
- A payment waterfall.
- Collateral and assignment of contract rights.
- Rights of the controlling classes.
- Reserve accounts, cash sweeps and profit distribution controls.
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