Project Finance Implementation for Infrapreneurs

Project Finance Implementation for Infrapreneurs 

Introduction

The course is part of the Brickstone Infrastructure Acceleration Programme ("Brickstone InfraLAB")  which was designed for the African Infrapreneur developing projects but lack the knowledge of basic limited recourse financial principles in making the deal happen.

This course is designed for Emerging Infraprenuers with ongoing projects and seeking to join the Brickstone InfraLAB or Project Managers/CEOs with little or limited project finance knowledge but who are trying to advance their projects into Financial Closure. Brickstone believes it is also important for Project Promoters to have a solid grasp of basic project finance awareness in order to agree with other project stakeholders and appreciate project finance principles that affect the value of their large scale projects

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Content Outline

The course provides important experience and practical examples in the following areas:

Module 01 - Quick Review on Project Finance Fundamentals

  • Understand the Project Finance processes: Understand motivations for the Project Finance Process as discussed in Project Finance Fundamentals Course
  • Project Documentation: To Discuss key organizational Documents and Key Agreements as well as Highlight the risk mitigation variations in the classic Project Finance structure (EPC, Resource Supply Agreement Variations, O&M Agreement Variation)

Module 02 - Achieving Bankability I : Predictable Cashflow

Projects must be characterized by a high degree of revenues predictability under a (partial or full) Contracted Revenue Arrangement with a creditworthy counterparty but if no offtake agreement the independent market study must prove a robust revenue upside capable of neutralizing risks such as price, demand, business cycle, inflation, currency parity and other operating risks

  • Offtake Arrangements: Explain structuring options for the using Offtake Agreements Issues
  • Key Terms in Offtake Agreements & Forms of Offtake Agreements: Explain structuring options for the using Offtake Agreements Issues
  • Application of Financial Models in Negotiations: Discussing DSRC: Explain structuring options for using DSRC
  • Case Studies Review: Case Discussion to recap Project Finance concepts learnt so far. 

Module 03 - Achieving Bankability II : Fixed Construction Delivery

Projects must be delivered under a fixed construction price and schedule with a Building (or EPC) Contractor with appropriate penalties in the form of liquidated damages (LDs) for its failure to perform

  • The rationale for Fixed Construction: Explain structuring options for the using Fixed Price Construction approach
  • Tendering Process and Cost PrecisionExplain why it’s important to have a Tender Process and Cost Precision
  • Key Terms in Construction Agreements: Explain the Key Terms in EPC Construction contracts
  • Case Studies Review: Case Discussion to recap Project Finance concepts learnt so far

Module 04 - Achieving Bankability III : Sustainable Operations & Environmental Compliance

  • Sustainability in Operating Infrastructure Projects
  • Key Terms in O & M Agreement
  • Environmental Due Diligence in Large Scale Projects: Understand the Environmental Due Diligence required in Large Scale Projects 
  • Case Studies Review: Case Discussion to recap Project Finance concepts learnt so far. 

Module 05 - The Infraprenuer Approach to Communicating the Project

Projects must be well communicated by  Infrapreneurs to gain the right traction amongst stakeholders such as Lenders, Government, Equity Investors, and the Community

  • Preparing a Project Summary Documentation
  • Communicating Tools for Stakeholders
  • Case Studies Review: Case Discussion to recap Project Finance concepts learnt so far

Module 06 - Understanding Finance Documentation

  • Introduction to Finance Documentation & Its importance
  • Understanding Financial Closure: Key Issues around Conditions Precedent and Lenders Mindset
  • Sources of Financing: Equity, Equity bridge loans, Subordinated shareholder debt, Mezzanine debt, Bank debt, Islamic project finance, Capital markets, Public sector lenders in project financings, Export credit finance, Multilateral agencies and development, finance institutions,
  • Lenders Due-Diligence: Due Diligence mainly concerned project if the project is commercially, financially and technically feasible by analyzing all the associated factors including the Financial Model and all Project Agreements
  • Lending Process: Letters of Intent, Term Sheets, Commitment Letters, and Mandate Letters and General Overview of Common Terms Heads of Agreement
  • Finance Documents: Main Provisions in Loan Agreements (CTA and ILFA) with a slight introduction to agreements for Equity Support, Security, Accounts Structure
  • Credit Enhancement : Credit Enhancement Options available 

Module 07 - Project Financial Plan & Closure

  • Implementing the Financing stage: Securing lowest financing costs, Understanding how to achieve the highest risk-reward trade-off possible, Minimizing exposure to the project
  • Preparing the Project Financing Plan & Financial Model: Helping participants to Understand the General Considerations in preparing a Project Financing plan. Understanding the architecture of a typical financial model and use of the model by the sponsor(s)
  • Achieving Financial Closure: To participant Understanding the Key Requirement of a Typical Financial Closure Process
  • Case Studies Review: Case Discussion to recap Project Finance concepts learnt so far. 

Module 08 - Post Financial Close Activities in Project Finance

  • Financial Close to Draw Down: Requirements by Lenders from Financial Close to Draw Down
  • EPC Contract Monitoring: Roles of the construction manager/owners representative to monitor the project at regular intervals.
  • Lenders Requirements for Project Monitoring: Roles of the Lenders Independent representatives to monitor the project at regular intervals.
  • Project Construction Closure: This step signifies the end of the project and discussions would focus on key lenders requirements 
  • Operation & Management Post Construction: Issues for Infrapreneurs, and interactions with 
Duration

Blended Learning (15 days online and 10 days physical classes)

Training Fee ( Terms and Conditions Apply) VAT Inclusive

TBD

Main Course Facilitators

Babafemi Awofala

Babafemi Awofala

Babafemi Awofala is the Founder and Senior Partner with Brickstone Partners Limited, an integrated professional service firm providing project finance advisory and transaction structuring for the agriculture, power, energy, infrastructure and real estate industry in West Africa.

Babafemi has 15 years of experience advising companies and governments on private investments and has led teams in the structuring and executing project/structured financings and M&A transactions, performing financial due diligence, developing complex financial models, performing credit analyses, drafting valuations reports and information memoranda, and negotiating term sheets and closing documents.

He was a Vice President at Travant Capital, a private equity and investment advisory firm which raised and partially deployed a US$107m private equity fund. Babafemi executed the following Power & Energy Related-Restructuring advisory transactions. Babafemi was an investment banking lead with Vetiva Capital Management Limited where he leads teams on the advisory, structuring and management of more than
$1 billion in public and private offerings of debt/quasi-equity/equity and mergers and acquisitions (M&A) transactions for corporations and governments in Nigeria for over 3 years.

Prior to joining Vetiva Capital Management Limited, he was at the ARM Investment Mangers and was part of the private equity real estate team and he was responsible for managing due diligence activities, structuring and coordinating potential investments and financings among co-investors. Key projects included acquisitions of medium–upper income residential and commercial properties in the Lagos and Abuja, equity placement
and advisory services for the raising of a $90 million private equity real estate fund that invests in real estate projects in West Africa, the US$ 350 million Toll Road Project in Lekki, Lagos and the financial plan for the expansion of a Regional Airport in Nigeria.

Mr Awofala has an MBA from the Lagos Business School, Pan – African University, Lagos. He has concluded professional courses in Finance & Financial Law at SOAS-University of London. He is a member of the Infrastructure Policy Commission and Technical Anchor on Mining Thematic Workgroup both at Nigeria Economic Summit Group

 

Guest Facilitators

There would be other guest facilitators who are leading specialist in Private Equity, Financial and Accounting with vast Entrepreneurship, Commercial and Advisory experience in starting Project Finance

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