BUS 529 - Project Finance

Project finance refers to the practice of raising capital for a specific project where the source of repayment of lenders or investors is limited to that single project’s cash flow. Project financing is used by asset intensive industries as a way of mitigating risk. Large oil and gas projects, power plants, toll roads and bridges, and real estate developments are examples of assets that are often financed in this way. The objective of this course is to provide students with a practical understanding of how project finance techniques can be used to raise capital for large projects:  the sources of capital, the identification of typical risks and their mitigation, and the execution of financings. A significant focus of the course will be on international transactions, since project finance is a popular method of financing cross-border projects, particularly in developing countries. A number of practitioners, including investment bankers and finance executives from corporations, will make presentations.