FIN338 Project Finance

This subject focuses on advanced concepts and issues relating to project finance techniques. This includes techniques to evaluate a project’s debt-carrying capacity and equity requirements, and then formulate a funding solution for that particular situation. Practical case studies are used to demonstrate how project financing applies to resource projects and infrastructure developments. The subject also examines the way deals are structured, including the mix of debt, equity and unique capital sources, as well as the valuation and risk issues associated with project finance. It examines the current trend towards private investment in government assets in the context of infrastructure finance deals, as well as the tendering and bid process used for these transactions.

 

For more information, please refer to the subject outline.

  • Learning outcomes
    • On successful completion of this subject, individuals should be able to:

      1. Evaluate economic and financial cash flow models to assess project risk and viability.
      2. Review and justify the requirement of specialist input in a project.
      3. Construct the appropriate financial structure for a project.
      4. Determine a project finance arrangement which meets client needs and reflects the current market climate.
      5. 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

  • Duration
    • The duration of this subject is one study period (12 weeks).

  • Assessment
    • Study Period 4 2020 and Study Period 5 2020:

      Assessment Type Assessed Weighting
      Assignment Week 6 40%
      Examination Week 12 60%

      Click here for an assessment timetable.

       

      Study Period 6 2020:

      Assessment Type Assessed Weighting
      Task Week 4 15%
      Assignment 1 Week 7 45%
      Assignment 2 Week 12 40%

  • Prerequisites
    • There are no prerequisites for this subject. However, individuals should review the ‘Assumed Knowledge’ tab to understand the prior knowledge Kaplan Professional advises they should hold before enrolling in this subject.

  • Assumed knowledge
    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FIN202 Fundamentals of Asset Valuation, FIN203 Fundamentals of Equity Markets, and FIN204 Fundamentals of Risk or understand the content covered in those subjects, prior to undertaking FIN338 Project Finance.

  • Course transition subject equivalence
    • Individuals may not be required to complete this subject if they have transitioned from a SIA/Finsia/Kaplan course and have completed the following subjects:

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

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

  • Reading list
    • There is no prescribed text for this subject.

      Individuals are provided with key readings and access to Kaplan Professional’s online databases. Individuals are encouraged to research and read widely on the topic.