NEWSLETTER GGSB MSc Finance December 2012
Electives News We will be delivering a new elective on Project Finance for the first time in April 2013. It will be taught in London by a project finance professional (CFA charter holder, currently working in Project Finance for Societe Generale) and students from all locations (Grenoble, Singapore and London) could attend. 30 out of our 100 students this year have decided to take it. 40 students have chosen the IT tools for market finance elective (delivered in Grenoble or in London) where they will study financial modelling using VBA and trading on the Bloomberg trading platform. The remaining 30 students have decided to follow the Financial Management elective (in Grenoble or Singapore) where they will develop short term cash management skills and advanced strategic controlling competences. Project Finance is typically used to fund large greenfield projects such as building infrastructures in sectors including transport, energy, oil & gas, mining, telecommunications and public utilities. Unlike classic corporate lending where the ultimate credit rationale resides on the creditworthiness of the borrower, under Project Finance structures lenders have recourse primarily to the revenue stream of the project or asset they are financing, rather than to the balance sheet of the sponsor. This area of finance is developing at a fast pace as governmental funding of large infrastructure projects is reducing. This 30 hours module covers the fundamentals of Project Finance including: Overview of Project Finance: What it is Advantages and disadvantages Description of a typical transaction, including key parties Understanding key project risks: Risk identification Mitigating and managing project risks Evaluating / structuring a project: Overview of the credit process up to financial close Credit risk appraisal – general considerations Financial structure, financial ratios and sensitivity analysis Financial documentation: Review of the main financial documents and their key terms. This module is practical, based on concrete examples and cases. It offers a solid background to students considering a job in Project Finance, either in a firm, in a bank or in an infrastructure fund. This new elective will definitely enhance our student’s chances to work in Project Finance teams.
GGSB MSc IN FINANCE
2