IIM Nagpur 2018

PROJECT FINANCE

READING REQUIREMENTS

Reading No. of
Sl Module Contents Requirements Sessions
No. (of 90
minutes
each)
1. Introduction – Project financing – its history, This is a Post-
and Project and transformation over the read module 2 sessions
Finance years, requirement for PF,
Overview traditional financing avenues Chapter 1 (Para
and current trends. 1)
– PF distinguished from other
forms of financing - Cases

2. Project – Structuring of a project - This is a Post-

Structures, types of structures read module 2 sessions
Stakeholders – Recourse and Non-recourse Chapter 1 (note
and their Structures in Project diagrams on
Roles Financing – Discussions and Page 18)
Case study Case Study is
a Pre-Read
Will be
provided in
advance)

3 Project – Project Sponsors, Project This is a Pre- 1 sessions

Stakeholders Consortium – roles and read module
responsibilities, key Chapter 2 –
contractual relationships para 2.1
– Infrastructure Projects –
Special features, various Chapter 3 (upto
models under Infrastructure para 3.4)
Projects.
4 Project – Project Financing – Concepts, This is a Post-
Finance Financing Consortium. read module 2 sessions
Markets and – Project term loans, Bond Chapter 3 (Para
Financing Issues, Sub-ordinated debt, 3.5)
Structures Lease Finance – introduction, Chapter 2
structure and standard (Paras 2.3 to
features and contractual 2.11)

Pratap Giri S., FCA, FCS

Adjunct Faculty
 IIM Nagpur 2018

aspects.

– Project Loan syndication General

Reading of
Chapter 9

– Equity Financing in Projects Chapter 4 (Para

4.6 and Table
4.2)

5. Risk – Risk Factors in Projects This is a Pre-

Analysis and – Stages and types of risk read Module 2 sessions
Mitigation in – Risk Evaluation Chapter 8
Projects – Risk Mitigation (Paras 8.2 till
– Discussions and Case Study the end)
Read the Table
8.5 on Risk
Matrix
carefully
Case Study is
a pre-read.
Will be
provided in
advance)
Text Book
Case Page 211
to be
discussed in
Class.
6. Project Due – Introduction to Project This is a Pre-
Diligence Appraisal read Module 3 sessions
and – Sponsors and Management Chapter 5
Financial Appraisal (Paras 5.6 and
Evaluation – Technical Appraisal 5.7)
– Market Appraisal Chapter 6
(Paras 6.2 to
6.4, para 6.7.1,
6.7.5, 6.7.8,
– Financial Appraisal and 6.7.9, 6.10 and
Viability Analysis - NPV, IRR, 6.11)
DSCR, BEP, ROCE, WACC Chapter 4
(Paras 4.2 and
– Sensitivity Analysis
4.4)

Pratap Giri S., FCA, FCS

Adjunct Faculty
 IIM Nagpur 2018

– Special Financing Features in

Infrastructure Projects Chapter 3 (Para
3.5)
7. Financial – Excel based spreadsheet This is a Post- 3 sessions
Modelling modelling with live case read module
Template study Material to be
Case Study – Additional Work out Case to be provided by the
provided for self-study – not to be Instructor
discussed in class.

8. Project – Introduction to Structured This is a Post-

Finance Project Finance – Products read module 2 sessions
Structuring and Methodology PPTs to be
– International and Indian Case provided by the
Studies and Discussions Instructor
– Wrap Up
Total no. of sessions 17

Pratap Giri S., FCA, FCS

Adjunct Faculty