Project Finance

Course content

This course investigates the key features of project finance, and some attention is put on the distinction between retail and corporate banking. Another focus is set on risk, structuring and profitability control in project finance.

The core contents of this course include:
[1] Overview of project finance; distinction between retail and corporate banking;
[2] Product range in project finance;
[3] Cash flow analysis in project finance; risk monitoring; performance figures and covenants;
[4] Structuring of project finance solutions; capex and interest facilities;
[5] Structural and legal aspects; collaterals; SPVs; insolvency procedures;
[6] Risk and capital budgeting in project finance; balance sheet management through and covered bonds.
Optional contents can include:
[7] Case studies 'project finance': real estate, infrastructure, oil/gas/energy production;
[8] Real estate economics.

Learning outcomes

Graduates will develop advanced project assessment skills by means of exercises, taking into account the parameters relevant for decision-making. In particular, they will develop a pronounced understanding of the risk/opportunity ratio of debt investors in project financing.

Recommended or required reading and other learning resources / tools

References: Böttcher/Blattner (2013): Projektfinanzierung: Risikomanagement und Finanzierung, Oldenburg. Brost et al (2012): Corporate Banking: Zukunftsorientierte Strategien im Firmenkundengeschäft, Frankfurt School V. Hockmann/Thießen (2012): Investmentbanking, Schäffer-Poeschel. Schmoll (2006): Vertriebsstrategien im Firmenkundengeschäft, Gabler.
Academic journals: Die Bank.

Mode of delivery

3 ECTS: ILV

Prerequisites and co-requisites

Modules 1;3

Assessment methods and criteria

ILV: final exam, assessment of active course participation