25824 Project Financing

Warning: The information on this page is indicative. The subject outline for a particular semester, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

UTS: Business: Finance
Credit points: 3 cp

Subject level:

Postgraduate

Result type: Grade and marks

Requisite(s): 25741 Capital Markets AND 25765 Corporate Finance
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.

Handbook description

This subject provides students with an understanding of the particular risks involved in project financing. It develops abilities to overcome the risks involved in project finance through analytical techniques and looks at the role of project financing in the modern economy with reference to recent projects in Australia and South-East Asia. Topics covered include identification and management of project risk; project financing; evaluation of projects; structuring; and documentation.

Subject objectives/outcomes

Upon successful completion of this subject students should be able to:

1. explain which assets to fund using project finance
2. examine the risks in the various stages of a project and the management of risks, including the importance of documentation and the use of guarantees to enhance the value of a project
3. analyse the importance of credit ratings for refinancing loans and assessing counterparty risk
4. use sensitivity analysis and independent reviews in project financing evaluation.

Contribution to course aims and graduate attributes

This subject provides students with a broad appreciation of project finance in developing large scale projects and its importance to economic development in developed and developing economies.

Teaching and learning strategies

This will be achieved in a intensive lecture-seminar format where practical case studies and examples will be analysed.

Content

1. An overview
2. Identification and management of project risk
3. Ratings for project financing
4. Financial evaluation - preparing and calculating
5. Structuring and funding
6. Documentation and performance guarantees

Assessment

Assessment Item 1: Assignment (Individual)

Objective(s):	1-4
Weighting:	40

Assessment Item 2: Final Examination (Individual)

Objective(s):	1-4
Weighting:	60

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

References

Nevitt, PK, Project Financing (6th ed, 2000) Euromoney Publication Chnace C, Project Finance (1995) IFR Publishing Ltd. (London) Bruce R, McKern B, Pollard and Skully M, Handbook of Australian Corporate Finance 5th edn, Butterworth 1997 Larry HP, Lang, Project Finance in Asia, 1998, AFIB Book Tinsley R, Project Finance Euromoney Publications

Journals

Project Finance International Journal of project Finance