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Description

Project Finance: Structuring the Deal, Modelling the Cash Flows and Allocating the Risks

Understand the logic of financing secured on a project's own cash flows rather than on the sponsor's balance sheet

  • 2 days — 14 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

Project finance follows a different logic from corporate lending. The lender is repaid out of the cash flows generated by the project itself, which shifts the whole analysis towards the robustness of the contracts and the allocation of risk. A poorly built structure reveals itself at the first operational setback.

These two days establish the fundamentals of the discipline. Participants review the typical structure of a transaction and the role of each party involved. They learn to build a cash flow model and then to read the coverage ratios expected by lenders. The contractual allocation of risk is worked through on a complete case study.

Learning objectives

  • Identify the parties involved in a project finance structure and their respective roles
  • Build a cash flow model that distinguishes the construction phase from the operating phase
  • Calculate and interpret the coverage ratios expected by lenders
  • Analyse the contractual allocation of risk between the parties
  • Identify the security package and the mechanisms used to ring-fence cash flows

What makes this programme different

A cash flow model is built live in the session and then stress-tested against several downside scenarios
Risk allocation is worked through contract by contract on a complete case study
The usual sticking points between project sponsor and lenders are played out in a negotiation exercise

Programme

1Rationale and Parties to the Structure

Financing a project rather than a company

  • The project company and its separation from the shareholders' balance sheets
  • Roles of the sponsor, the lenders and the contractors
  • The concept of limited recourse and its consequences
  • Stages from feasibility study through to commercial operation

2Modelling the Cash Flows

Building the model that every party will rely on

  • Distinction between the construction phase and the operating phase
  • Treatment of development costs and interest during construction
  • Building the debt service profile and the repayment schedule
  • Good practice for a model intended to be audited

3Ratios and Debt Structuring

What lenders actually look at

  • Debt service cover ratio and loan life cover ratio
  • Sizing the debt from available cash flows
  • Reserve accounts, dedicated accounts and the cash flow waterfall
  • Downside scenarios required by lenders

4Risks and Contracts

Allocating each risk to the party best able to bear it

  • Construction, operating, market and counterparty risks
  • Transferring risk through construction and operating contracts
  • Security granted to lenders and step-in rights on default
  • Handling the risks that no party is willing to bear

Who is it for

Financial analysts · bank relationship managers · finance lawyers and managers responsible for infrastructure or energy projects.

Prerequisites

Sound command of financial analysis and of building cash flow forecasts.

Dates & locations

24 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.