Project Financing Electricity Projects with Senior Debt

What is project financing? – A functional definition, highlighting project & lender configurations.- Profit and loss statement – Essence to distil CFADS, size debt and equity to fund a project.- Making CFADS (& DS) predictable – focusing on each line item of P&L statement.- How to protect CFADS (& DS) predictability – Focus on each line of P&L statement.- Setting up alarms and policing – Deviation of CFADS and DS and potential causes thereof.- Setting timings – periods starts and ends, business days notices and days to deliver.- Loan Market Association (LMA) precedent – Don’t reinvent the wheel but pick ‘n chose.- Security package – In case it all goes pear shaped.- Ancillary facilities – Other often necessary or advisable finance needs in one package.- CPs – Confirming facts before committing to lend.- Portfolio management – Policing compliance with credit/facilities agreement.- Respect established processes & negotiators’ limitations – No mandate to re-engineer processes.- Basics of electricity and technologies therein.- Vertically integrated electricity monopolies – One end of regulatory spectrum.- Liberalised electricity markets – The other end of regulatory spectrum.- Investment support regimes – They differ by country and over time! Know what to lookout for?- Electricity market advisors – Price forecasts and insights beyond price forecasts.- Datacentres – Their valuation reports and resilience thereof as off-takers.- Due diligence: Understanding its general intricacies.- Legal due diligence – The details that matter and why?- Technical due diligence – The details that matter and why?- Insurance due diligence – What details matter and why?- Tax due diligence – What to lookout for and why?- Model audit – What a model auditor looks for and confirms to lenders.- Lender's scepticism and curiosity – Closing due diligence gaps and operational reporting cracks.- Single/multiple project vs numerous projects – Materiality informs DD and mitigation needs.- Online, realtime and collaborative due diligence – Live Diligence™ experience.- The project financing process – From courting, conception, cradle to grave.- Typical meetings and calls – Timetable and workflow on the March to financial close.- Leverage finance vs project finance –Chalk and Cheese.- Epilogue: The need for further edition of this book.- My project finance teachers – A roll call.