Since the 1970s, the practice of financing major private and public sector capital-intensive projects has shifted to an ever-greater reliance on private funding sources, as opposed to direct financing through the issuance of corporate or government bonds. In the 1990s, these financing practices have undergone further changes with the increasing globalization of capital markets, the growth of derivative instruments, and the rapid increase in information technology that enhances cash-management practices. Today's project financing market is increasingly using sophisticated capital market, bank and agency financing mechanisms as well as using derivative instruments for asset and liability management. Thus, financial market innovations are bringing the once separate fields of project financing and international finance more closely together. This is the first book to treat both topics as an interrelated whole, for contemporary project financing cannot be fully understood without a good working knowledge of the international financial markets that have developed the various financing techniques and funding sources being used. The book provides an in-depth description of cross-border project financing as a technique for financing capital-intensive projects, as well as an overview of certain financing and derivative instruments currently available in the global financial markets. The first part of the book provides an overview of certain funding and derivative instruments currently used in the international financial markets, including a general overview of financial innovations that have occurred in recent decades. Topics covered include an introduction to the syndicated Euro-credit market; an overview of various marketable debt securities actively used in the international financial markets; an introduction to depositary receipt as an innovative way of raising cross-border equity capital; an elaboration of the derivative instruments most commonly used in the project financing arena, including interest rate, currency and commodity swaps; and finally an overview of banks' off-balance sheet activities as a critical driving force for the participation of banks in the international financial and derivative markets. The second part of the book provides an in-depth analysis of project financing that concentrates on the financier's perspective. Topics covered include a general overview of the project financing industry; a step-by-step description of a typical cross-border project finance transaction; a description of the main characteristics and advantages of project financing as opposed to more traditional corporate lending practices; an overview of appraisal techniques for assessing project financing; a comprehensive analysis of the different risk management techniques used in project financing for reducing, distributing and hedging risks; and a brief overview of certain limited-resource financing schemes. The book includes a special focus on the various stages of the risk management process for project financing, elaborating on the different stages of risk identification, risk assessment, risk reduction, risk distribution and hedging and insurance. The authors also provide a comprehensive glossary of terms relating to international finance and project financing. This book will fulfill the need for an essential text on project financing as well as a professional reference guide.

This overview of project finance for the oil and gas industry covers financial markets, sources and providers of finance, financial structures, and capital raising processes. About US$300 billion of project finance debt is raised annually across several capital intensive sectors—including oil and gas, energy, infrastructure, and mining—and the oil and gas industry represents around 30% of the global project finance market. With over 25 year's project finance experience in international banking and industry, author Robert Clews explores project finance techniques and their effectiveness in the petroleum industry. He highlights the petroleum industry players, risks, economics, and commercial/legal arrangements. With petroleum industry projects representing amongst the largest industrial activities in the world, this book ties together concepts and tools through real examples and aims to ensure that project finance will continue to play a central role in bringing together investors and lenders to finance these ventures. - Combines the theory and practice of raising long-term funding for capital intensive projects with insights about the appeal of project finance to the international oil and gas industry - Includes case studies and examples covering projects in the Arctic, East Africa, Latin America, North America, and Australia - Emphasizes the full downstream value chain of the industry instead of limiting itself to upstream and pipeline project financing - Highlights petroleum industry players, risks, economics, and commercial and legal arrangements

This cutting-edge financial casebook is divided into four modules: Structuring Projects, Valuing Projects, Managing Project Risk, and Financing Projects. The cases have been carefully selected to reflect actual use of project finance over the past five years in terms of geographic location (the cases come from 15 different countries) and industrial sectors. * Benjamin Esty, of the Harvard Business School, is one of the leading scholars in project finance. * Project finance is becoming the financing mechanism of choice for many private firms. * Cases require the reader to integrate knowledge from multiple disciplines when making a single managerial decision. This integration of functional areas such as strategy, operations, ethics, and human resource management encourages the reader to adopt a more integrative perspective and understanding of the interconnectedness of managerial decision-making.

A timely update to one of the most well-received books on project financing As an effective alternative to conventional direct financing, project financing has become one of the hottest topics in corporate finance. It's being used more and more frequently—and more successfully—on a wide variety of high-profile corporate projects, and has long been used to fund large-scale natural resource projects. But the challenges of successful project financing are immense, and the requirements of the process can easily be misunderstood. That's why John Finnerty has returned with the Third Edition of Project Financing. Drawing on his vast experience in the field, Finnerty takes you through the process step by step. Using updated examples and case studies that illustrate how to apply the analytical techniques described in the book, he covers the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, raise the funds, and much more. Includes completely new chapters that cover the financing of sustainable projects as well as Sharia-compliant (Islamic) project financing New material has been added to the discussion of financial modeling and international debt financing Explores today's most innovative financing techniques and analyzes the shortcomings of unsuccessful project financing attempts Whether you're a corporate finance professional, project planner, or private investor, Project Financing, Third Edition demystifies the complexities of project financing and provides an invaluable guide for anyone who wants to master innovation in corporate finance today.

Globalization And Opening Up Of Our Economy Has Made It Essential To Understand The Functioning Of International Financial Markets Which Are Private And Unregulated.This Book Presents An Overview Of The International Financial Markets Including Foreign Exchange Market, International Money, Banking, Equity, (Stock Exchanges) And Bond Markets.Analysis Of The Exchange Rate Of Regimes Is Presented Along With The Theory Of Determination Of Exchange Rates. The Derivative Instruments Available For Hedging Exchange And Interest Rate Risks Are Discussed At Length. The Problem Of Liquidity And The Impact Of External Debt On Economic Stability Have Been Highlighted. The Practices In Syndicated Loan Which Are Relevant For Raising External Commercial Loans Are Stated. The Functioning Of Major Stock Exchanges In Developed And Emerging Countries Has Been Examined In View Of The Interest In Listing Equity In External Markets. Finally, The Concepts And Procedures In Accessing International Equity Markets Through Adrs And Gdrs Are Explained.The Book Would Be Of Immense Use To The Students Of Economics And Mba As Well As Bankers And Corporate Executives.

The Principles of Project Finance reviews the technique of project finance. It explores, step-by-step, the key ingredients of the concept. The book is aimed at a business savvy audience, but one which is not necessarily up to speed on the concept, and has a global reach by covering both OECD countries and the emerging markets. Project finance is positioned at a key point between the global capital markets and the energy and infrastructure industries. To explain and illustrate the ideas behind project finance, the book is made of chapters written by a range of leading players in the market from around the world and is split into four sections: ¢ The first reviews various themes and issues key to the project finance market - views from bankers, lawyers and advisers plus chapters on bank, bond and multilateral finance and a look at environmental, insurance and construction market issues. ¢ The second section looks at how project finance is used in various sectors of the energy and infrastructure market - renewable energy, oil and gas, mining, PPPs and roads and transportation. ¢The third then takes an in-depth look at various projects finance markets from around the world - Australia, Vietnam, Indonesia, India, Turkey, Russia, Africa, France, USA and Brazil. ¢ Finally, the fourth section presents a series of Top 10 deal cases studies from the pages of Thomson Reuters Project Finance International (PFI), the leading source of global project finance information.

"This report explores the changing face of project finance in developing markets. IFC, and more recently, other multilateral, bilateral, and export credit institutions have played a strong suportive role in bringing project finance to its current volumes. This role was highlighted in 1998, when these institutions sustained flows of an estimated $25 billion at a time when there was an abrupt decline in some types of private flows. IFC, in particular, was a pioneer of project finance in developing countries and has a unique depth of experience in this field, which spans more than 40 years in the practical implementation of some 2000 projects, many of them on a limited-recourse basis. Particularly in today's marketplace, IFC's ability to mobilize finance (both loan and equity for its own account and syndicated loans under its B-loan program), the strength of iis project appraisal capabilities, and its experience in structuring complex transactions in difficult environments have been reassuring to other participants and important to the successful financing of many projects. This report draws on IFC's experience in more than 230 greenfield projects costing upward of $30 billion that relied on project finance on a limited-recourse basis (see Appendix A). It opens with a brief description of the major international trends in project finance over the past two decades and then turns to the essential ingredients of successful project financing."--Publisher abstract.

This book focuses on the functioning of the evolving International Monetary System and on recent developments and trends in the financial markets that have become increasingly globalized. It identifies the forces that are shaping international monetary arrangements and driving financial markets in an increasingly liberalized environment. The book pays particular attention to the implications for developing countries and how they are affected by the 'internationalization' of the world economy and the emerging trends in developmental assistance. It is written in an easy flowing style with little use of diagrams and mathematics.

Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public Projects, Fourth Edition provides essential, core coverage of project finance, offering new insights into Sharia-compliant instruments and a comprehensive overview of the current state of international regulation of banking post financial crisis. This updated edition includes new case studies and topics related to country risk, along with insights from project finance experts who share their specialized knowledge on legal issues and the role of advisors in project finance details. The book will be useful for readers at all levels of education and experience who want to learn how to succeed in project finance. Features useful, illustrative case studies Addresses human rights and sustainability issues, in particular the Equator Principles for determining, assessing and managing environmental and social risk in projects Explores treatment of guarantee mechanisms that governments are increasingly providing to private developers to attract private capital

The term "project finance" is now being used in almost every language in every part of the world. It is the solution to infrastructure, public and private venture capital needs. It has been successfully used in the past to raise trillions of dollars of capital and promises to continue to be one of the major financing techniques for capital projects in both developed and developing countries.Project Finance aims to provide: *Overview of project finance*Understanding of the key risks involved in project finance and techniques for mitigating risk*Techniques for effective evaluation of project finance from both a financial and credit perspectiveThe author differentiates between recourse and non-recourse funding, tackles the issues of feasibility, identifies the parties normally involved with project finance plans, and details techniques for realistic cash flow preparation.*Inspired by basic entry level training courses that have been developed by major international banks worldwide*Will enable students, and those already in the finance profession, to gain an understanding of the basic information and principles of project finance*Includes questions with answers, study topics, practical 'real world' examples and an extensive bibliography