Principles of Project Finance

by E. R. Yescombe

Overview

The Second Edition of this best-selling introduction for practitioners uses new material and updates to describe the changing environment for project finance.  Integrating recent developments in credit markets with revised insights into making project finance deals, the second edition offers a balanced view of project financing by combining legal, contractual, scheduling, and other subjects. Its emphasis on concepts and techniques makes it critical for those who want to succeed in financing large projects.  With extensive cross-references and a comprehensive glossary, the Second Edition presents anew a guide to the principles and practical issues that can commonly cause difficulties in commercial and financial negotiations. - Provides a basic introduction to project finance and its relationship with other financing techniques - Describes and explains: sources of project finance; typical commercial contracts (e.g., for construction of the project and sale of its product or services) and their effects on project-finance structures; project-finance risk assessment from the points of view of lenders, investors, and other project parties; how lenders and investors evaluate the risks and returns on a project; the rôle of the public sector in public-private partnerships and other privately-financed infrastructure projects; how all these issues are dealt with in the financing agreements

Product Details

ISBN-13:	9780124157552
Publisher:	Elsevier Science & Technology Books
Publication date:	11/13/2013
Sold by:	Barnes & Noble
Format:	eBook
Pages:	560
File size:	4 MB

About the Author

E.R. Yescombe has over 30 years' experience in various forms of structured finance, including project finance, leasing, export credits, real estate and asset finance. A former banker and head of project finance in London for a major international bank, he is now an independent consultant on project finance and public-private partnerships (PPPs), advising investors on financing for power, infrastructure and PPP projects, as well as public-sector entities on PPP policy issues, project procurement and contracting.
E.R. Yescombe has over 30 years’ experience in various forms of structured finance, including project finance, leasing, export credits, real estate and asset finance. A former banker and head of project finance in London for a major international bank, he is now an independent consultant on project finance and public-private partnerships (PPPs), advising investors on financing for power, infrastructure and PPP projects, as well as public-sector entities on PPP policy issues, project procurement and contracting.

Table of Contents

1. Introduction 2. What is Project Finance? 3. Project Development and Management 4. The Project-Finance Markets5. Working with Lenders 6. Types of Project Agreement 7. Common Aspects of Project Agreements 8. Sub-Contracts and Other Related Agreements 9. Commercial Risks 10. Macro-Economic Risks 11. Regulatory and Political Risks 12. Financial Structuring 13. The Financial Model 14. Project-Finance Loan Documentation 15. Public-Sector Financial Support 16. Export-Credit Agencies and Development-Finance Institutions 17. Recent Market Developments and Prospects for Project Finance

What People are Saying About This

Michael Gerrard

This is an authoritative work written by a distinguished practitioner. I have no doubt it will quickly become a key text book... (Michael Gerrard, Head Of Public Private Partnerships, Partnerships UK PLC)

Nobuya Takezawa

This book provides a comprehensive treatment of project finance accessible to those less familiar with the subject matter, yet detailed enough to serve as a valuable reference for the experienced manager. The book covers a wide array of topics, from legal issues to valuation methods, and even hedging financial risk with financial derivatives. Given the increasing importance of project finance in Asia and the Pacific Rim, Principles of Project Finance will be an invaluable reference for academics and managers alike in this region.
—Professor Nobuya Takezawa, International Christian University, Japan

From the Publisher

An all-inclusive guide about deal making for practitioners and students who want an introduction to project finance

Editorial Reviews

A London-based consultant explains project financing as a method of raising long-term debt to finance major projects by borrowing against the cash flow generated by the project alone. It depends, he says, on a detailed evaluation of a project's construction, operating, and revenue risks; and their allocation between investors, lenders, and other parties through contractual and other arrangements. The approach has been gaining popularity over the past two decades as privatization and deregulation have dried up conventional sources of funding. The glossary doubles as a minimal index. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Booknews

"This book provides a concise, accurate, and updated context of project finance. Not only it is a favoured reference for project entrepreneurs, financial controllers and government regulators, but it is also a highly recommended reading for students in business and civil engineering." —Shiguang Ma, University of Wollongong

"Yescombe’s book is the best compendium of project finance concepts I know of. Principles is a detailed 'cook-book' for organizing project financings, comprehensive in its description of risks, contracts, and project participants, including sponsors, capital providers, and public and multinational institutions." —Ray Hill, Emory University

"This book is clear enough for the novice and comprehensive enough for the expert. It covers all areas in project finance and does so precisely. It is a must for anyone looking to get into project finance." —Alfonso Canella, Brandeis University

"E.R. Yescombe’s new edition of Principles of Project Finance is a state-of-the-art, comprehensive overview, with detailed and balanced coverage of the economic, financial, and legal dimensions of project finance. The book is full of relevant case studies and practical advice to make project financing work in the post-financial crisis environment." —John S. Strong, College of William and Mary

From the Publisher