Financing Power Projects in Nigeria

Mastering the use of Project Finance options for large scale projects in the power sector

Attend this course to:

  • Examine typical structures for power financing including project finance, corporate finance, lease  or fund structures
  • Review active sources of debt financing and sources of equity
  • Increase your knowledge of how to prepare project s for financing  to effectively understand and manage the risk involved at each stage
  • Explore current industry issues within Nigeria
  • Optimise your understanding of which projects are getting funded
  • Analyse the longer terms of potential challenges that may arise in the coming years to be effectively prepared

Why you should attend?

Securing finance for even the most well researched and robust power projects can be challenging. Understanding how to analyse the risks, structure the finance and where to look for it is vital for success. This highly interactive 3-day programme is designed to leave participants with a deep understanding of the market for financing of projects of all types in the Nigerian power sector, thus preparing sponsors, developers, and actors of all types to better position their projects for funding.

Core case studies will be used with a focus on the power sector, in both fossil fuelled and renewable energy. These will be supplemented with other examples of “real life” Project Finance and corporate transactions with a focus on the Power sector. These practical exercises will ensure you will build the skills and knowledge to develop a robust financing plan and ensure long term viability in your power project.

Power industry professionals seeking to gain a strategic overview of the concepts and methodologies, alongside practical tips for improving their investment planning and maximising the asset value including:

  • Commercial managers
  • Project managers and engineers
  • Corporate Treasury
  • Contractors
  • Lawyers and other professional advisors
  • Investment Managers investing in project backed bond
  • Personnel in banks in the following areas working with companies in the power sector
  • Credit risk analysis of corporates involved in Project Finance
  • Credit portfolio management
  • Corporate Banking Relationship Managers
  • Origination teams in debt and equity capital markets
  • Syndicated loan teams
  • Lawyers
  • Development Finance Institutions
  • Export Credit Agencies
  • Equipment manufacturers

Day One

Module 1: Typical structures for Power Financing

  • Corporate Finance and recourse-based structures
    • Corporate Guarantees
    • Export Insurance
    • Receivables-based lending
    • Construction loans and EPC financing
  • Project Finance Structures
  • Lease Structures
  • Fund structures
  • Leveraged Financing structures
    • Traditional Leveraged Finance structures
    • Equity Bridge
    • Creative structures

Module 2: Active Sources of Financing

  • Sources of Debt Financing
    • Nigerian bank-lending processes
    • Syndication and club loans
    • Importance of government backstop
    • Refinancing
    • International banks
    • Multilaterals, ECAs and DFIs
  • Sources of Equity
    • Infrastructure funds
    • Sponsor finance
    • Early-stage investors
    • Private Equity
    • Grant funding
    • Offtaker funding

Day Two

Module 3: Preparing Projects for funding

  • Understanding and allocating risks
    • Systemic Risks
    • Project Risks
    • Operational Risks
    • Development Risks

How Lenders and Investors evaluate projects

  • Lender Perspectives
    • Financing Structure
    • Debt Service Capacity
    • Assessing Default risk without ratings
    • Security Package
    • Loan Covenants
    • Pricing
    • Hedging forex exposure

Day Three

Module 4: Industry Issues

  • Collection and Losses
  • Gas Supply
  • Regulation
  • PRG and government backstop
  • Liquidity
  • Capacity of counterparties
  • Evolution from current transitional stage into future stages

Module 5: Which projects get funded?

  • Recent Transactions
    • NIPP and PHCN Privatisation
    • IPPs
    • Captive Power
    • RE Projects
    • Niche projects
  • Major Players
    • EPCs
    • Sponsors
    • Equity Investors
    • Lenders
    • Offtakers and offtaker profiles
    • Advisors
    • Developers
  • Funding terms
    • Stages
    • Key terms
    • Contractual and project structures
    • Project Types
  • Projects seeking funding
    • Sectors
    • Size
    • Developer and sponsor profiles
    • Structures
    • Counterparties

Module 6: Five-Year Forecast

  • Expectations of different  actors
  • What actors need the financing market to evolve into
  • Risks that could curtail financing options, terms and volumes
  • Factors that could increase financing options and volumes

 

 

 
 

 
 
 

 

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This course is only available as a custom course tailored for your business, contact us to discuss your requirements.

Testimonials for our Courses

“It was very good. The case studies and exercises were very useful”