FINANCE 898 - Project Finance

Course Description

Project Finance is lending or investing in equity securities relying  exclusively or mainly on the cash flows generated by the project to repay loans and earn a return on investment for equity investors. We will study large scale infrastructure projects and  understanding of this course requires prior completion of Raising Capital, Corporate Finance and knowledge of options and derivatives. 

In addition to the financing aspects, project finance deals with designing the financing and contracting structure so as to mitigate risks that may occur and incentivize the various actors in the project to meet their obligations so as to have a successful project outcome or to allow for an appropriate restructuring of the project if unexpected eventualities occur.  The multinational nature of these projects further complicates the legal arbitration of disputes. Further, the governance of such enterprises is very complicated by their sheer scale and often political importance in the countries where such projects occurs.

The course requires significant reading and course preparation in addition to pre assignments.