IIM Nagpur

PGP 2017

PROJECT APPRAISAL AND FINANCING

COURSE OVERVIEW

Course Objective and Assessment

This course offers a working knowledge of the various facets of project appraisal and
financing so as to enable the participants to evaluate and review issues connected
with project financing, financing methodologies and financing markets. The general
appraisal criteria for decision-making, structuring of projects under various
alternatives and contemporary developments will also be discussed. General
introduction to project finance modeling and cases on structured project financing
and new developments will also be covered.

The assessment would be based on the understanding of the participants of the underlying
concepts and their ability to relate them to practical situations. The Mid-term will be for One
hour and the end-term examination would be for a period of 2 hours (under Open Book
system).

Prescribed Reading – Project and Infrastructure Finance, – Corporate Banking

Perspective – Vikas Srivastava and V. Rajaraman – Oxford University Press, First
Edition, 2017

In addition, hand outs, presentations and case studies will be provided as and when necessary
during the course. The suggested reading and reference books are for background reading
only and will not be followed chapter-wise for the delivery of this course. The Instructor will
provide guidance on necessary sections for additional reading.

Evaluation Criteria :
 Project Assignment (Presentation /Submission) 50%
 Mid Term Exam 20%
 End Term Exam 30%
Total 100%

Pratap Giri S., FCA, ACS

Course Instructor
IIM Nagpur
PGP 2017

MODULAR COURSE CONTENTS

No. of Sessions
Sl Module Contents (of 75 minutes
No. each)
1. Introduction and – Project financing – its history, and
Project Finance transformation over the years, requirement 2 sessions
Overview for PF, traditional financing avenues and
current trends.
– PF distinguished from other forms of
financing - Cases

2. Project Structures, – Structuring of a project - types of structures

Stakeholders and their – Recourse and Non-recourse Structures in 2 sessions
Roles Project Financing – Cases Discussions
3 Project Stakeholders – Project Sponsors, Project Consortium – roles 2 session
and responsibilities, key contractual
relationships
– Infrastructure Projects – Special features,
various models under Infrastructure Projects.
4 Project Finance – Project Financing – Concepts, Financing
Markets and Financing Consortium. 4 sessions
Structures – Project term loans, Bond Issues, Sub-ordinated
debt, Lease Finance – introduction, structure
and standard features and contractual aspects.
– Project Loan syndication
– Equity Financing in Projects
– Discussions and Cases
5. Risk Analysis and – Risk Factors in Projects
Mitigation in Projects – Stages and types of risk 2 session
– Risk Evaluation
– Risk Mitigation
– Discussions and Cases
6. Project Due Diligence – Introduction to Project Appraisal
and Financial – Sponsors and Management Appraisal 4 sessions
Evaluation – Technical Appraisal
– Market Appraisal
– Financial Appraisal and Viability Analysis -
NPV, IRR, DSCR, BEP, ROCE, WACC
– Sensitivity Analysis
– Special Financing Features in Infrastructure
Projects

Pratap Giri S., FCA, ACS

Course Instructor
IIM Nagpur
PGP 2017

7. Financial Modelling – Excel based spreadsheet modelling with live 2 sessions

Template Case Study case study
8. Structured Project – Introduction to Structured Project Finance –
Finance International and Indian Case Studies and 2 sessions
Discussions
– Invits and REITs
Total no. of sessions 20

Pratap Giri S., FCA, ACS

Course Instructor