Project Finance Implementation for Infrapreneurs

Brickstone Dealcamp Series

Project Finance Implementation for Infraprenuers

 

Project Finance Implementation for Infrapreneurs (Advanced)

Brickstone Dealcamps Series were 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 part of the DealCamp Series and builds on the course Project Finance Fundamentals for Infraprenuers which design for project entrepreneur developing Infrastructure projects  but lack the knowledge of basic limited recourse financial principles in making the deal happen. We define “Infrapreneurs” as Entrepreneurs or business owners who are typically in corporate business but now wants to develop a new project. They also called Project Sponsors in the Limited Resource Finance space.

Project Finance Implementation for Infrapreneurs focuses on implementing project finance  projects and takes participants through the stages of structuring until financial close.

This course is aimed primarily at CEOs with little or limited finance knowledge but who are incubating projects in Energy and Infrastructure space. Brickstone believes it is also important important that CEOs 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

Programme Overview
  • A Twelve Day (12)-day training covering the advanced project finance knowledge for Infrapreneurs
  • Consists of lectures, hands-on group exercises and case studies.
Objectives

Entrepreneurs wishing to gain a clearer understanding of the fundamentals of business finance and how finance impacts on the decisions they make on a day-to-day basis either at a departmental or company-wide level.

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 - Predictable Cashflow

Projects must be characterized by a high degree of revenues predictability under a (partial or full) Contracted Revenue Arrangement with a creditworthy counter party but if no offtake agreement the independent market study must proved 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 - 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 04 - 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

  • Rationale for Fixed Construction: Explain structuring options for the using Fixed Price Construction approach
  • Tendering Process and Cost PrecisionExplain why its important for 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 05 - 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 slight introduction to agreements for Equity Support, Security, Accounts Structure
  • Credit Enhancement : Credit Enhancement Options available 

Module 06 - 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 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 07 - 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 (7 days online and 5 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 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 lead 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 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 of 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 Infrastructure Policy Commission and Technical Anchor on Mining Thematic Workgroup both at Nigeria Economic Summit Group

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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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