IIM Nagpur

PGP 2018

PROJECT APPRAISAL AND FINANCING

Course Objective and Assessment

This course is an extension of Corporate Finance and Corporate Business Valuation learnt in the
Core Curriculum to bring in the Applied Corporate Finance context from a Debt and Banking
Perspective. It will greatly enhance your understanding of core corporate finance in the real
world context and will help those looking for careers in corporate banking, investment banking,
corporate finance, debt financial markets, financial consulting and corporate advisory and
syndication services.

This course offers a working knowledge of the various facets of contemporary project appraisal and
financing including the infrastructure sector so as to enable the participants to evaluate and review
issues connected with project financing, financing methodologies and financing markets. The general
appraisal criteria for decision-making, structuring of projects under various alternatives and
contemporary developments will also be discussed. General introduction to project finance modeling
and cases on structured project financing and new developments will also be covered.

Career Track: It will facilitate placements primarily with Project Consultancy firms, Debt Arrangers,
Commercial Banks, Investment Banks, Credit Rating Agencies, Financial Risk Advisory, Insolvency
Professional Firms, Stressed Asset Management, Corporate Advisory, Market Research and Management
Consultancy Firms. Career track will include front line Project Finance transaction desks, Technical and
Financial DPRs, Credit Appraisal, Due Diligence, Risk Assessment, Credit Rating, Debt Syndication,
Distressed Asset Valuation and Resolution, Insolvency Practice under the IBC, Project Formulation and
Market Research Services.

The course assessment would be based on the understanding of the participants of the underlying
concepts and their ability to relate them to practical situations. The Mid-term exam will be based on
short questions and the end-term examination will be a mix of caselets, short problems and objective
questions. Both exams will be under Open Book system.

Prescribed Reading – Project and Infrastructure Finance, – Corporate Banking Perspective – Vikas
Srivastava and V. Rajaraman – Oxford University Press, First Edition, 2017

In addition, hand outs, presentations, research articles and case studies will be provided as and when
necessary during the course. The suggested reading and reference books are for background reading
only and will not be followed chapter-wise for the delivery of this course. The Instructor will provide
guidance on necessary sections for additional reading.

Evaluation Criteria :
 Project Assignment (Presentation /Submission) 50%
 Mid Term Exam 20%
 End Term Exam 30%
Total 100%

Pratap Giri S., FCA, ACS

Course Instructor
IIM Nagpur
PGP 2018

COURSE OVERVIEW
MODULAR COURSE CONTENTS

No. of Sessions
Sl Module Contents
No.
1. Introduction and – Project financing – its history, and
Project Finance transformation over the years, requirement 2 sessions
Overview for PF, traditional financing avenues and
current trends.
– PF distinguished from other forms of
financing - Cases

2. Project Structures, – Structuring of a project - types of structures

Stakeholders and their – Recourse and Non-recourse Structures in 2 sessions
Roles Project Financing – Cases Discussions
3 Project Stakeholders – Project Sponsors, Project Consortium – roles 2 session
and responsibilities, key contractual
relationships
– Infrastructure Projects – Special features,
various models under Infrastructure Projects.
4 Project Finance – Project Financing – Concepts, Financing
Markets and Financing Consortium. 3 sessions
Structures – Project term loans, Bond Issues, Sub-ordinated
debt, Lease Finance – introduction, structure
and standard features and contractual aspects.
– Project Loan syndication
– Equity Financing in Projects
– Discussions and Cases
5. Risk Analysis and – Risk Factors in Projects
Mitigation in Projects – Stages and types of risk 2 session
– Risk Evaluation
– Risk Mitigation
– Discussions and Cases
6. Project Due Diligence – Introduction to Project Appraisal
and Financial – Sponsors and Management Appraisal 3 sessions
Evaluation – Technical Appraisal
– Market Appraisal
– Financial Appraisal and Viability Analysis -
NPV, IRR, DSCR, BEP, ROCE, WACC
– Sensitivity Analysis
– Special Financing Features in Infrastructure
Projects

Pratap Giri S., FCA, ACS

Course Instructor
IIM Nagpur
PGP 2018

7. Financial Modelling – Excel based spreadsheet modelling with live 2 sessions

Template Case Study case study
8. Structured Project – Introduction to Structured Project Finance –
Finance International and Indian Case Studies and 1 sessions
Discussions
– Invits and REITs
Total no. of sessions 17

Pratap Giri S., FCA, ACS

Course Instructor