ESCP Europe

As an effective alternative to conventional direct financing, project financing has become one of the hottest topics in corporate finance. Its being used more and more frequentlyand more successfullyon a wide variety of highprofile corporate projects, and has long been used to fund largescale natural resource projects, from pipelines and refineries to electricgenerating facilities and hydroelectric projects. But the challenges of successful project financing are immense, and the requirements of the process can easily be misunderstood. This newly updated edition of Project Financing takes you through the process step by step. Using actual examples and case studiesincluding Euro Disneyland and the Eurotunnel Projectthat illustrate how to apply the analytical techniques described in the book, it covers the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, and raise the funds. John Finnerty draws on his vast experience in the field to detail each step of the process, describing the circumstances in which it is most likely to be advantageous, how to craft contractual arrangements to allocate risks and rewards among the interested parties, and how to deal with government, legal, tax, and financial issues. Finnerty has fully revised his original classic work to include uptodate material on the rationale for project financing, assessing risk, security arrangements, legal structure and contract options, preparing the financial plan, estimating the borrowing capacity of a project, legal requirements, and much more. In addition, he has added completely new chapters that cover the role of financial institutions that finance large projects, analytical tools that are increasingly useful in capital budgeting, and techniques for hedging project risks. His latest research draws from the work of renowned Harvard researcher Benjamin C. Esty and illustrates in detail why some project financing plans have succeeded while others have failed. For corporate finance professionals, CFOs, financial analysts, project planners, and private investors, Project Financing, Second Edition demystifies the complexities of project financing and provides an invaluable guide for anyone who wants to master innovation in corporate finance today. from book jacket.

1. What is project financing? --- 2. The rationale for projects? --- 3. What is special about large projects? --- 4. Who finances large projects? --- 5. Analyzing project viability --- 6. Designing security arrangements --- 7. Structuring the project --- 8. Preparing the project financing plan --- 9. Discounted cash flow analysis --- 10. Financial modeling and project evaluation --- 11. Using real options analysis to evaluate a project --- 12. Sources of project funds --- 13. Managing project risks --- 14. Issues for the host government --- 15. Case study: The Indiantown Cogeneration project --- 16. Case study: The Tribasa Toll Road project --- 17. Case study: The Euro Disneyland project --- 18. Case Study: The Eurotunnel project --- 19. Conclusion --- Appendix: A: Comparative terms of selected projects --- Appendix: B: other examples of project financings --- Appendix: C: Legal investment requirements governing New York Life Insurance Companies..