| Details | | Publication Date: | 1996-09-01 | | Series: | PROJECT FINANCING | | Edition Description: | Illustrated |
| Size | | Length: | 384 pages | | Height: | 9.3 in | | Width: | 6.5 in | | Thickness: | 1.5 in | | Weight: | 26.4 oz |
Publisher's Note
An essential guide to an indispensable area of corporate finance - Around the globe, thousands of high-profile corporate projects are relying on the innovative investment technique known as project financing to service their debt burden and to provide a steady stream of returns to project investors. But without a comprehensive understanding of the process, disasters are sure to happen--witness the financial fiascoes at Euro Disney and The Eurotunnel Project. This timely guide shows corporate finance pros and project planners how to get project financing right. Using examples and case studies, it takes readers through all the necessary steps and processes, from assessing risk and making security arrangements to preparing the financial plan and evaluating the project's legal requirements. - JOHN D. FINNERTY (New York, New York) is General Partner in charge of corporate finance at McFarland Dewey & Co and professor of finance at Fordham University.
Project financing is an innovative and timely financing technique that has been used on many high-profile corporate projects, including Euro Disneyland and the Eurotunnel. Employing a carefully engineered financing mix, it has long been used to fund large-scale natural resource projects, from pipelines and refineries to electric-generating facilities and hydroelectric projects. Increasingly, project financing is emerging as the preferred alternative to conventional methods of financing infrastructure and other large-scale projects worldwide.
The intricacies of project financing are formidable, and can easily be misunderstood and, consequently, misused. While project financing structures share certain common features, by necessity, they require tailoring the package to the particular circumstances of the project. That is where both the benefits and the challenges lie.
As an investment banker currently with Houlihan Lokey Howard & Zukin, John D. Finnerty has a wealth of experience in project financing. Now, he brings his considerable expertise to a comprehensive exploration of the facts, figures—and potential faux pas—surrounding Project Financing.
What distinguishes project financing from conventional direct financing is that rather than looking to the firm's entire asset portfolio to generate cash flow, in project financing, the project is "a distinct legal entity" and the financing is tailored to the cash flow characteristics of the project assets. Such a structure can yield a more efficient allocation of risks and returns than conventional financing, but careful financial engineering is critical.
With actual examples and case studies, Project Financing takes you through the process step by step. It covers the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, and raise the funds. Along with cogent analyses of why some project financing plans have succeeded while others have failed, you'll find detailed information on: - Designing contractual arrangements to support project financing
- Issues for the host government—legislative provisions, public/private infrastructure partnerships, public/private financing structures
- Credit requirements of lenders, and how to determine the project's borrowing capacity
- How to prepare cash flow projections and use them to measure expected rates of return
- Tax and accounting considerations
- Detailed case studies—including Euro Disneyland and the Eurotunnel Project—that illustrate how to apply the analytical techniques described in the book
From funding sources and contract options to security arrangements and legal requirements, Project Financing provides the most complete coverage available today.
Project financing is one of the hottest topics in corporate finance. As an effective alternative to conventional direct financing, it is being used more frequently—and more successfully—on a wide variety of projects. In this comprehensive new book, John D. Finnerty, Editor of Financial Management, takes an in-depth look at this important financing technique.
Praise for PROJECT FINANCING
"Owing to his teaching as a finance professor and as an experienced investment banker, John Finnerty brings to his book, Project Financing, an insightful perspective, blending the theoretical with the practical."—Zoltan Merszei, Former Chairman, President, and CEO, The Dow Chemical Company
"Finnerty has managed to distill the complexities of project financing with its myriad components and variations. Clear, practical, and in-depth, Project Financing is a valuable user's guide for project sponsors, regulators, host governments (local and foreign), and financiers alike."—Ricardo M. Campoy, Managing Director, ING Capital Corporation
"Project Financing warrants a place in the essential libraries of corporate financial managers, their advisors, senior ...
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