Project Finance

and
Loan Syndication
Focus : Large Corporate and Infrastructure

November 3 – 7, 2009

Coordinators
Vikas Srivastava
Tasneem Chherawala
Project Finance and Loan Syndication
Focus : Large Corporate and Infrastructure
Banking and Project Finance in particular has seen a paradigm shift in the last decade or so.
From completely security backed "Full recourse" lending; banks have moved to a "Limited
recourse" and "No recourse" structures for lending to projects. Banks have also organized into
syndicates to lend to big ticket projects which enables them to diversify their risk while
continuing to finance good projects. Further, from a "lend and hold" strategy, banks have
shifted to "originate and sell" strategy which allows them to free their balance sheet by bundle
up assets and sell them to other banks and investors looking for long term investments.
The economic meltdown that had its roots somewhere in this paradigm shift, has not affected
the Indian banking system to a great extent, but has changed the focus of the banks back to
good old "due diligence". However, the Indian industry has not remained untouched by the
global financial tsunami. Corporate India has reacted to the global meltdown with predictive
speed and anticipated course of action. Most organizations have shifted focus from growth to
preserving cash. On the operations front, companies are curtailing production and focusing
on liquidating inventory. Yet, there has been a rethink on the drastic cost cutting by the corporate.
A recent survey done by Ernst & Young in the UK of 115 multinationals in the top 350 FTSE
companies over a five year period has revealed that fewer than 1 in 3 cost reduction programmes
have sustained improvement in performance.
However, at a time when the weak monsoon is threatening to reduce farm output, India's
Index of Industrial Production, or IIP, rose much faster than expected in June, 2009 from last
year, mainly driven by stimulus packages, and easy monetary policy, coupled with higher
demand for consumer goods and increased mining activity. The IIP for June had a growth rate
of 7.8 per cent, much higher than the 5.4 per cent for the corresponding month last year and
the revised growth rate for May. The cumulative growth for the period April-June 2009 stood
at 3.7 per cent, down from 5.3 per cent for the corresponding period last year. Of industries, 12
out of the 17 industry groups showed a positive growth in June, compared to the corresponding
month of the preceding year.
The fiscal and monetary pushes by the Government of India which includes cuts in key policy
rates and measures such as cut in CENVAT, full exemption from basic customs duties, refund
of excise duties, easing of ECB norms and a host of guarantees to push up exports has made
Corporates look into growth aspects once again. Corporate India is having a second look at
their capital expenditure plans and is looking at both organic and inorganic growth which
may result in big ticket deals spurring a larger loan syndication market in India. Are our
banks geared to take up the exposures in these troubled times?
Apart from this, many independent analysts believe that to put India back onto the growth
trajectory, a further impetus into developing infrastructure is a must. It is expected that
investment in infrastructure will have counter-cyclical effect on economy. The twin bane of
high interest rates and escalating input costs had slowed down financing in this sector
particularly with bankers looking at cautiously at the "viability" and "bankability" of
infrastructure projects. Expected investment in physical infrastructure alone during the eleventh
five year plan would be Rs. 20,02,000 crores. This would require debt of Rs. 9,96,000 crores. In
the present budget, allocation to NHAI, JNNURM, APDRP, etc have been enhanced
substantially. Also the budget has recognized the strengthening of IIFCL.
Given this background, it is imperative that banks' project finance and debt syndication
desks be geared up with sharp skills for appraising management, market and commercial,
technical and ecological, financial and economical viability of projects with particular reference
to risk analysis. Credit officers need to ensure that individual components of financing and
returns of the project are well-defined.
It is in this background that NIBM is announcing a Programme on Project Finance and Loan
Syndication with Focus on Large Corporate and Infrastructure.
Course Outline
Day One
Ö Appraisal of Macroeconomic and Industry Scenario and its Impact on Lending
Ö Sectorwise Issues in Project Lending
Ö Analysis of Balance Sheet and Projected Financial Statements with Case Study
Day Two
Ö Project Appraisal and Due Diligence
Ö Assessment of Term Loan and Working Capital with Case Study
Ö Appraising Infrastructure Projects, Structural Issues and Documentation
Day Three
Ö Loan Syndication Process and Strategies
Ö Project Case Study with Focus on Financial Analysis and Modeling Including NPV
Profiles, IRR, Sensitivity and Scenario Analysis
Ö Projects Implementation Issues and Monitoring
Ö Problem Projects and Corporate Debt Restructuring
Day Four
Ö Sectoral Issues in Appraising Infrastructure Projects with Focus on Road, Power, Ports
and Logistics, Airports and High-tech Agriculture Projects
Ö Asset Securitization Process and Case Study
Ö Loan Syndication Case Study
Day Five
Ö Rating and Pricing of Project Loans
Ö Regulatory, Political and Force Majeure Risk Analysis
Ö Financing Infrastructure Related Real Estate Projects like Hospitals, Educational
Institutions, IT Parks, SEZs, etc.
Pedagogy
The pedagogy of this intensive five day programme includes a combination of lectures, hands-
on case studies, group discussions, presentations and computer simulations. The case studies
will discuss some of the Indian and International experiences in Project Financing and Lending
Strategies.
Who should Attend?
The programme is designed to sharpen the skills of :
‰ Executives of Project Appraisal and Financing and Debt Syndication Department of
Commercial Banks, Investment Banks and Financial Institutions.
‰ Credit Officers of Banks and Financial Institutions who want to sharpen and enlarge the
scope of their existing appraisal skills.
‰ Executives of companies involved in appraising Infrastructure Projects.
Programme Coordinators
Vikas Srivastava and Tasneem Chherawala
Faculty
In addition to NIBM Faculty, professionals from banks and financial institutions will participate
as guest faculty.
Dates : November 3 – 7, 2009
The programme will begin at 9:00 am on Tuesday, November 3, 2009 and conclude by 5:00 pm
on Saturday, November 7, 2009.
Venue
NIBM Campus, Kondhwe Khurd, Pune
Fees per Participant
US $ 2000 for foreign participant
Rs. 27,000 for member or Rs. 32,000 for non-member Indian participant*
The fees cover the cost of tuition, boarding and lodging facilities, programme material, etc.
Payments by Domestic Participants should be made in demand drafts/pay-orders drawn in
favour of “National Institute of Bank Management”, on any bank and payable at Pune. (*Service
Tax will be charged extra, if made applicable)
Preferred Mode of Remittance for Foreign Participants : SWIFT
1. Name & Address of : Bank of Maharashtra (BoM), NIBM Kondhwe Branch,
our Bankers NIBM P. O., Pune 411 048, Maharashtra, India
2. Name of the Account : National Institute of Bank Management
3. Current Account No. : 20002400021
4. Bank's Swift Code : MAHBINBB OCP
5. Format for Sending Payments : MT AC 103
For Remittance in US Dollar For Remittance in EURO
‰ Correspondent bank of : Bank of New York ‰ Correspondent bank of : ABN AMRO,
Bank of Maharashtra Mellon, New York Bank of Maharashtra Frankfurt
‰ A/c No. of BoM with : 8033165537 ‰ A/c No. of BoM with : 5602507019
above bank above bank
‰ Swift Code of Bank of NYM : IRVTUS3N ‰ Swift Code of ABN AMRO : ABNADEFF

TDS Exemption
Kindly note that NIBM is exempted under Section 194J of the Income Tax Act 1961, hence no
tax is deductible at source from any payments made in its favour.
Hostel Accommodation
The Programme is fully residential. Participants will be provided well furnished single room
AC accommodation in the Institute’s renovated hostel complex on the Campus. Participants
will not be permitted to bring their family members to stay on the campus.
Nominations and Enquiries
Please address your enquiries and nominations along with the fees to :
Vikas Srivastava/Tasneem Chherawala
Programme Coordinators
National Institute of Bank Management
NIBM Post Office, Kondhwe Khurd
Pune 411 048 (INDIA)
Telephone : 0091-20-26716000 (EPABX) 26716345/26716546 (Direct)
Fax : 0091-20-26834478
E-mail : vikass@nibmindia.org/tasneem@nibmindia.org
Telegram : NIBANKMAN PUNE 411 048
Last Date for Receiving Nominations
October 29, 2009
Transport Facilities at Pune
Prepaid Taxi/Auto services are now available at the Pune Airport/Railway Station (16/9 km
distance from NIBM Campus). As such, participants are expected to make their own transport
arrangements at Pune to reach the Campus. However, if requested well in advance, NIBM
shall arrange for hired transport (to and fro from the campus) on actual cost basis.