Schuster

Information about Schuster

Published on October 11, 2007

Author: Nivedi

Source: authorstream.com

Content

Structured and Project Finance:  Structured and Project Finance Lessons for African Projects Name of Conference September 30, 2004 Overview: Structured & Project Finance:  Overview: Structured & Project Finance Introduction: Overview of Ex-Im Bank Structured Finance Products History and Activity Project v. Structured Finance: Distinctions Deal Appropriateness Products – What We Do:  Products – What We Do Comprehensive guarantee Direct Loan Political risk only guarantee Role is as Senior Lender Participation limited by U.S. content History: Where We’ve Been:  History: Where We’ve Been Activity: What We’ve Done:  Activity: What We’ve Done Structured finance has been dominating our portfolio. Authorizations By Sector, Project and Structured Finance, 1995-2004 ($MM):  Authorizations By Sector, Project and Structured Finance, 1995-2004 ($MM) Together, power & oil/gas deals comprise 80% of our authorizations. Authorizations By Sector, Project and Structured Finance, 1995-2004 ($MM):  Authorizations By Sector, Project and Structured Finance, 1995-2004 ($MM) Latin America and Asia comprise over ¾ of deals, Africa only 6% Structured & Project Finance: What is the Difference?:  Structured & Project Finance: What is the Difference? Structured (Typical) Full recourse to sponsor Expansion of operation in existence for 3+years Analysis of historic & projected cash flows Limited “perfection of security” Project Finance Limited recourse Greenfield or project expansion Analyze project’s future cash flows Complex documentation to perfect security Terms: Project v. Structured Finance:  Terms: Project v. Structured Finance Structured Finance Pay interest during construction (IDC) Maximum Repayment Term 10 years/12 years power Equal semi-annual principal 1st principal 6 months post-completion Finance for: local costs connected to export contract, ancillary fees Project Finance Capitalize IDC Repayment up to 14 years Flexible amortization Grace periods available Local costs 15% of contract value, special ancillary services Deal Appropriateness-Structured v. Project Finance:  Deal Appropriateness-Structured v. Project Finance The Trade-off What Not to Do Issues Structure and Core Principles Co-finance Example Project Finance: Trade-off:  Project Finance: Trade-off Whether to use project finance is often a trade-off between: Balance Sheet Considerations Advisory & Legal Expenses Time to close & fund and Other Considerations:  Other Considerations For Project Finance: Expertise For Structured Finance: Existing credit source For either: Existence of more than an idea and a site What Not to Do:  What Not to Do Don’t: Use project finance due to lack of supporting balance sheet strength. Assume “micro project finance” takes as long as big deals – it takes more! Use structured finance to get lower credit standards. Slide14:  Project Finance: Structure Host Government Essential structure can appear simple, but shows that a contract must support every relationship. Core Concepts of Project Finance:  Core Concepts of Project Finance Reasonable Assurance of Repayment Equity at Risk Long-term investors “Real” cash equity investments Proper incentives Sound Regulatory & Legal Framework Non-interference & lenders’ rights Government support Clear regulation and transparent, enforceable contracts Structured Finance: Structure :  Structured Finance: Structure Degree of structuring can vary Elements tend to include: Reserve & other accounts Payment priorities & cash control Funding tied to milestones Dividend release conditions Example Structure Finance: Off-shore Trust:  Example Structure Finance: Off-shore Trust “Externalize” risk by: Placing secure revenues off-shore In a trust for the lenders Project Company Product Off-Shore Buyer $ Off-shore Trust $ $ $ 1. Operations & Maintenance Expenses 2. Lender Debt Payments 3. Dividends Structure Finance Core Principles:  Structure Finance Core Principles Same as for project finance: Reasonable Assurance of Repayment Equity at risk Sound Regulatory & Legal Framework Structured finance can save money & time, but not at the expense of credit principles. Co-Finance:  Co-Finance Reinsurance of lead ECA by follower Used mostly for straight-forward credits Not suited for project finance Too complex for “passive” following Little cost savings Use in structured finance being considered. Examples: Project Finance in Africa:  Examples: Project Finance in Africa Examples: Project Finance in Africa:  Examples: Project Finance in Africa Conclusions:  Conclusions Structured finance increasingly an option, especially for small deals African activity has been less than hoped Project finance requires equity support & expertise Structured finance can save time & money but not at expense of credit Ex-Im Bank committed to being flexible in finding deal-specific approaches

Related presentations


Other presentations created by Nivedi

7 habits of highly effective ir
24. 10. 2007
0 views

7 habits of highly effective ir

Intro to Middle East
23. 10. 2007
0 views

Intro to Middle East

Ulysses
01. 10. 2007
0 views

Ulysses

chasm
02. 10. 2007
0 views

chasm

english version
03. 10. 2007
0 views

english version

griffin BGP tutorial
07. 10. 2007
0 views

griffin BGP tutorial

eurjap2004pres
09. 10. 2007
0 views

eurjap2004pres

aboriginal art
10. 10. 2007
0 views

aboriginal art

Galloway
15. 10. 2007
0 views

Galloway

room
15. 10. 2007
0 views

room

keymicrobial rosenberg
23. 10. 2007
0 views

keymicrobial rosenberg

franklin
15. 10. 2007
0 views

franklin

JavaVsDotNET
21. 10. 2007
0 views

JavaVsDotNET

strategies maximize
29. 10. 2007
0 views

strategies maximize

rehder050407
10. 12. 2007
0 views

rehder050407

Chuck Bedsole
25. 10. 2007
0 views

Chuck Bedsole

WA1 2 Redmond
29. 10. 2007
0 views

WA1 2 Redmond

2005 Hand Washing Findings rev
30. 10. 2007
0 views

2005 Hand Washing Findings rev

ch5slides
07. 11. 2007
0 views

ch5slides

Turkey CoalRestructuring
26. 11. 2007
0 views

Turkey CoalRestructuring

chapter 28
23. 12. 2007
0 views

chapter 28

Crisis Management Lecture 2
29. 12. 2007
0 views

Crisis Management Lecture 2

Lecture 25
16. 10. 2007
0 views

Lecture 25

DERMATOLOGY QUIZ ANSWERS
05. 01. 2008
0 views

DERMATOLOGY QUIZ ANSWERS

Maeve Foreman
07. 01. 2008
0 views

Maeve Foreman

revNotes1stMC
04. 10. 2007
0 views

revNotes1stMC

IWGT comet final2
30. 10. 2007
0 views

IWGT comet final2

mccay4
12. 10. 2007
0 views

mccay4

Presentazione ICE TUNISI
23. 10. 2007
0 views

Presentazione ICE TUNISI

Kapitel4
24. 10. 2007
0 views

Kapitel4

CAARI Lab 00
12. 10. 2007
0 views

CAARI Lab 00

Taipei August 05
19. 10. 2007
0 views

Taipei August 05

LOWBACKPAIN2
16. 02. 2008
0 views

LOWBACKPAIN2

2004L9Stat246
24. 02. 2008
0 views

2004L9Stat246

berne
28. 02. 2008
0 views

berne

PAM
23. 10. 2007
0 views

PAM

slides bird flu
30. 03. 2008
0 views

slides bird flu

A105 003 Sky
13. 11. 2007
0 views

A105 003 Sky

hunter lovins ifm07
30. 10. 2007
0 views

hunter lovins ifm07

Psicotrópicos
24. 10. 2007
0 views

Psicotrópicos

IntroToRealOptions
16. 04. 2008
0 views

IntroToRealOptions

QUMRAN COMPRESSED
14. 02. 2008
0 views

QUMRAN COMPRESSED

third exam review
18. 04. 2008
0 views

third exam review

McGraw Hill
22. 04. 2008
0 views

McGraw Hill

posp72 0
11. 10. 2007
0 views

posp72 0

7 Metlin
11. 10. 2007
0 views

7 Metlin

cshcn
07. 05. 2008
0 views

cshcn

ls3 d2 room22
30. 04. 2008
0 views

ls3 d2 room22

Open GL
02. 05. 2008
0 views

Open GL

physics of accelerators
02. 05. 2008
0 views

physics of accelerators

thuy
02. 05. 2008
0 views

thuy

maryland 080202
19. 02. 2008
0 views

maryland 080202

CONFECA2005
22. 10. 2007
0 views

CONFECA2005

20061201 afrinic5 report
27. 03. 2008
0 views

20061201 afrinic5 report

Roe Summer Lecture
13. 10. 2007
0 views

Roe Summer Lecture

opa
22. 10. 2007
0 views

opa

break this glass update
07. 01. 2008
0 views

break this glass update

GGunn Feb05
12. 03. 2008
0 views

GGunn Feb05

cronqvist
31. 12. 2007
0 views

cronqvist

jcdl
02. 10. 2007
0 views

jcdl

jje
10. 10. 2007
0 views

jje

milcho
15. 10. 2007
0 views

milcho

Masahiro Satake session 6
09. 10. 2007
0 views

Masahiro Satake session 6

TIANS 2003 final
11. 03. 2008
0 views

TIANS 2003 final

mariana
22. 10. 2007
0 views

mariana

Schulthess X1Review Feb2004
15. 10. 2007
0 views

Schulthess X1Review Feb2004

april croatia
26. 03. 2008
0 views

april croatia

200793142735
03. 01. 2008
0 views

200793142735

CultureClashWestPoint
17. 10. 2007
0 views

CultureClashWestPoint

notifications
10. 10. 2007
0 views

notifications

Daar
16. 10. 2007
0 views

Daar

IGEM2006 Imperial Powerpoint
01. 01. 2008
0 views

IGEM2006 Imperial Powerpoint

booklet osijek2006
18. 03. 2008
0 views

booklet osijek2006

12km MM5 Issues Mar8 9 2005
29. 10. 2007
0 views

12km MM5 Issues Mar8 9 2005