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FIN338 Project Finance

This subject provides students with an advanced knowledge of concepts and issues relating to project finance techniques. Students will develop the skills to determine a project’s debt-carrying capacity and equity requirements and then be able to formulate a funding solution for that particular situation. Practical case studies will be used to demonstrate how project financing applies to resource projects and infrastructure developments. The way deals are structured, including the mix of debt, equity and unique capital sources, will be a key focus, as will the valuation and risk issues associated with project finance. The current trend towards private investment in government assets will be examined in the context of infrastructure finance deals and you will gain an insight into the tendering and bid process used for these transactions.

This subject contributes to the corporate finance major.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      1. Assess project viability.
      2. Evaluate economic and financial cash flow models to analyse project risk.
      3. Discuss the need for specialist input when required.
      4. Develop the appropriate financial structure for a project.
      5. Determine a project finance arrangement which meets client needs and reflects the current market climate.
      6. Develop project documentation and syndication.
  • Subject content
    • Topic Title
      Topic 1 Introduction to project finance
      Topic 2 Transaction management and due diligence
      Topic 3 Capital structuring
      Topic 4 Financial structuring
      Topic 5 Financial modelling
      Topic 6 Case study – Resources financing
      Topic 7 Documentation and syndication
      Topic 8 Government projects
      Topic 9 Case study – Infrastructure financing

  • Assessment
  • Prerequisites
    • Students enrolling in a Masters level elective subject are assumed to have the pre-requisite knowledge in the three core subjects (FIN101, FIN102, FIN103 and FIN114 (for students enrolled before 2014)).

      Kaplan recommends that you complete the following Kaplan Online subjects (or have a thorough working knowledge of the content) prior to enrolling in this unit:

  • Course transition subject equivalence
    • Students who transition from a SIA/Finsia/Kaplan course and have completed the following subject within the course completion time frame may not also complete the subject:

      • M31 Advanced Industrial Equity Analysis^ PLUS
      • M41 Project Finance^
      • FIN238 Project Finance

      ^ both M31 and M41 must be completed in order to achieve one elective exemption. One subject alone will not award an exemption.

  • Reading list
    • There are no prescribed texts for this subject.

      Details of any required and further readings for this subject are provided in the subject room.  Purchase of any text other than a prescribed text is not required.