Learning objectives
Knowledge and understanding: Students acquire depth and systematic understanding of knowledge in area of structured finance and project financing and can work with theoretical background at the field of structured finance and project financing and research-based knowledge at the forefront of their academic discipline.
Disciplinary methodologies: Students acquire sufficient insight in to structured finance and project financing and understanding of fundamentals techniques that are applicable to their own work area.
Applying knowledge and understanding:- Understand how and why to use structured finance and project financing for multiple goals within a larger strategy -Understand the major benefits and challenges of structured finance and project financing - Learn to plan, develop, and evaluate a comprehensive project financing case -Learn how to measure structured finance and project financing efforts - Implement financial and statistical methods.
Making judgements: Ability to autonomously select relevant information useful for project financing planning, controlling and decision making in the short, medium and long term.
Communication skills: Prepare and discuss reports for managers about planning, controlling and decision making in a business contest, using an appropriate and specific vocabulary.
Learning skills: Continuously increase and update the competences, knowledge and methods acquired for managerial decision making.
Prerequisites
None
Course unit content
Structured finance is an "alternative" kind of finance that benefits from risks sharing. The course aims at providing a comprehensive overview of project financing and structured finance, including motivations, benefits and challenges, main players involved, risk management and evalution techniques, and financial assessment methods.
Full programme
• Definitions and introductory concepts
o Differences between corporate and project financing, ring fence principle, financial statement, risks
• Main players involved
o Sponsor, advisor, SPV, contractor, purchasers and suppliers, public administration, banks
o Banks
o Project financing phases
• Analyzing project viability
o Risks evaluation
o Project's cash flow
• Decision analysis techniques
o Sensitivity
o Decision trees
o Simulations
• Vocenants
• Financing the project
• Case studies
Bibliography
Instructors's material will be provided
Additional textbooks:
- Project Financing: Asset-Based Financial Engineering, 3Ed, 2015 - John D. Finnerty
- Finance for Engineers: Evaluation and Funding of Capital Projects, 2008 - F. K. Crundwell
- Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public Projects, 2012 - Stefano Gatti
Teaching methods
The lecture will be a blending of the instructor presenting relevant material and a learning by doing of the students (case studies and exercises) in order to stimulate their critical thinking.
Assessment methods and criteria
The assessment is based on an individual written test. The final written test, lasting approximately 1,5 hours, consists of both theory questions and practical exercises. The theory questions may be multiple choice, “true or false” and open question. The exercises have a structure that is similar to exercises carried out in classroom. Theory questions and practical exercises are weighted on a 50/50 basis. The test is passed if the student reaches a score of at least 18 points. “30 cum laude” is given to students who achieve the highest score on each item and use precise vocabulary.
Other information
Participation in lectures is not compulsory.
