Infrastructure development is the backbone of economic growth and societal progress, but it requires vast amounts of long-term capital that traditional financing methods often struggle to provide. Securitization offers a powerful modern solution, transforming the predictable, long-term cash flows from roads, power plants, and utilities into marketable securities. This innovative approach enhances liquidity for project developers, diversifies risk for investors, and unlocks new sources of funding to accelerate the construction of essential public and private projects. This comprehensive training program is designed to equip finance professionals with the specialized knowledge to navigate this complex and high-impact market.

This intensive 10-day program will provide a deep dive into the unique challenges and opportunities at the intersection of project finance and structured finance. Participants will master the methodologies for structuring, valuing, and executing securitization deals backed by infrastructure assets. We will cover everything from the initial due diligence on project revenues to the intricacies of legal documentation and credit enhancement. Through a blend of theoretical frameworks, practical case studies, and interactive workshops, you will develop the skills to structure deals that are both financially robust and commercially viable, ultimately playing a pivotal role in shaping the sustainable infrastructure of tomorrow.

Duration

10 days

Target Audience

• Project finance professionals and analysts
• Infrastructure fund managers and investors
• Securitization and structured finance specialists
• Government officials and policy-makers in infrastructure development
• Legal and transaction counsel in project finance
• Credit analysts and rating agency analysts
• Investment bankers and underwriters
• Professionals from public-private partnership (PPP) units

Objectives

• Master the core principles of project finance and securitization.
• Develop a systematic approach for structuring infrastructure deals.
• Identify and mitigate key legal, financial, and political risks.
• Understand the role of credit rating agencies in infrastructure securitization.
• Learn best practices for valuing and modeling infrastructure projects.
• Evaluate the cash flows and revenue streams of various asset types.
• Navigate the regulatory and policy landscape for infrastructure finance.
• Produce a comprehensive prospectus for an infrastructure securitization.
• Explore the use of securitization in public-private partnerships (PPPs).

Course Modules

Module 1: Foundations of Infrastructure Finance

• An overview of the project finance life cycle.
• The key players in a project finance deal (sponsors, lenders, government).
• Understanding the role of a Special Purpose Vehicle (SPV).
• The difference between corporate finance and project finance.
• Analyzing long-term contractual agreements and off-take contracts.

Module 2: Project Finance Deal Structuring

• The components of a project finance transaction.
• Structuring debt and equity in a project.
• The importance of the intercreditor agreement.
• Understanding cash flow waterfalls and distribution priorities.
• Common structural features and financial covenants.

Module 3: Legal and Regulatory Frameworks

• An in-depth look at key legal documents and agreements.
• Navigating the regulatory environment for infrastructure projects.
• The role of government concessions and licenses.
• Understanding the legal framework for securitization.
• The importance of legal opinions and due diligence.

Module 4: Risk Analysis in Infrastructure Projects

• Identifying and categorizing project risks (construction, operational, political).
• Techniques for risk allocation and mitigation.
• The use of insurance and guarantees.
• Assessing market and demand risk.
• Case studies in managing project risk.

Module 5: Financial Modeling and Valuation

• Building a project finance financial model from scratch.
• Key metrics: IRR, NPV, DSCR, LLCR, PLCR.
• Valuing the project's cash flows and equity.
• Sensitivity analysis and stress testing.
• Understanding the assumptions that drive project valuation.

Module 6: Introduction to Infrastructure Securitization

• An overview of securitizing infrastructure cash flows.
• The benefits of securitization for sponsors and lenders.
• The process of pooling and tranching infrastructure assets.
• The role of a special purpose vehicle (SPV) in a securitization.
• The types of securities created (e.g., project bonds, ABS).

Module 7: Credit Rating and Investor Considerations

• The role of credit rating agencies in securitization.
• The factors that influence an infrastructure project's credit rating.
• Understanding the investor base for infrastructure securities.
• The importance of credit enhancement and liquidity facilities.
• Managing investor relations and transparency.

Module 8: Securitizing Different Asset Classes

• The unique considerations for securitizing power plants and utilities.
• The challenges of toll roads and transportation projects.
• Securitizing social infrastructure projects (e.g., hospitals, schools).
• The potential for securitizing renewable energy projects.
• Case studies of securitized infrastructure assets.

Module 9: The Role of Public-Private Partnerships (PPPs)

• An overview of the PPP model for infrastructure development.
• How securitization can be used to finance PPP projects.
• The legal and contractual complexities of PPPs.
• The government's role in a PPP securitization.
• Examining successful PPP securitization deals.

Module 10: Green and Sustainable Infrastructure Finance

• The growing demand for green and sustainable infrastructure.
• How to identify and qualify green infrastructure assets.
• Securitizing assets with verified environmental benefits.
• The role of green bond principles and external verifiers.
• The importance of post-issuance reporting and transparency.

Module 11: International and Cross-Border Transactions

• Navigating different legal and political jurisdictions.
• The impact of cross-border data transfer regulations.
• Managing foreign exchange and political risk.
• The role of multilateral development banks and export credit agencies.
• Case studies in international infrastructure securitization.

Module 12: Advanced Structuring Techniques

• The use of mezzanine debt and subordinated tranches.
• Understanding project-on-project financing.
• The role of co-mingling risk and different asset pools.
• The use of derivatives and hedging strategies.
• Innovations in infrastructure securitization.

Module 13: Financial Distress and Restructuring

• Identifying the signs of financial distress in a project.
• The process of debt restructuring and workouts.
• The role of legal and financial advisors in a restructuring.
• The impact of default on a securitized transaction.
• Case studies of failed and restructured projects.

Module 14: Emerging Trends and Innovations

• The impact of technology on infrastructure finance.
• The potential of blockchain for asset tracking and reporting.
• The rise of infrastructure as an asset class for retail investors.
• The role of data analytics in risk assessment.
• The future of infrastructure development and its financing.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.