BA5849 PROJECT FINANCE
| Course Code: | 3125849 |
| METU Credit (Theoretical-Laboratory hours/week): | 3 (0.00 - 0.00) |
| ECTS Credit: | 8.0 |
| Department: | Business Administration |
| Language of Instruction: | English |
| Level of Study: | Graduate |
| Course Coordinator: | Assoc.Prof.Dr. ÇAĞRI TOPAL |
| Offered Semester: | Fall and Spring Semesters. |
Course Objectives
-
introduce project finance as a technique to raise long-term financing for capital intensive projects on a limited or non-recourse basis,
-
provide a clearly defined framework for designing, appraising and structuring project finance deals,
-
provide tools to identify and manage risks in project finance transactions,
-
present financial modeling techniques to bring together all the elements of the course to make informed decisions in project financing.
Course Content
This course provides a firm foundation on project finance, which is a product of financial engineering to raise long-term financing for large capital intensive projects. This recently and rapidly developed technique has become common throughout the world during the last couple of decades in the face of enormous infrastructure needs of both developed and developing countries. Project finance has the potential of offering distinct advantages over corporate finance in certain cases especially for large and risky projects, and this potential makes it particularly interesting. However, it has also its own complexities, which need to be managed properly in each stage of a deal if this potential is to be realized.
Course Learning Outcomes
Upon successful completion of this course, students should be able to:
Course Specific Skills:
- Understand how project finance differs from corporate finance in raising long-term financing,
- Appreciate the rationale in using project finance as a useful alternative to corporate finance tools in certain cases,
- Analyze project viability, and identify and evaluate risks that can be encountered in a project finance deal,
- Design security arrangements in a project finance transaction,
- Structure a project based on the advantages and disadvantages of different structural forms,
- Design the optimal financial plan for a project finance deal,
- Construct financial models to assess the viability and risks of a project,
- Tailor, by using the financial model, the structure of a project to satisfy debt and equity holders,
- Use real options to assess the value of contingencies in evaluating a project,
- Identify different sources of project funds,
- Understand how to arrange financing through syndication,
- Understand how to manage project risks using derivative instruments such as swaps, options, forwards and futures,
- Understand issues for the host government and the concept of public-private partnerships (PPPs)
- Apply the concepts learned to real world practical examples through case studies.
Discipline Specific Skills:
- Understand the potential of project financing in certain cases in business administration
- Develop understanding of the importance of firm-level investment decisions for an economy.
Personal and Key Skills:
- Develop problem solving skills Develop writing and discussion skills
- Develop presentation skills
Program Outcomes Matrix
| Level of Contribution | |||||
| # | Program Outcomes | 0 | 1 | 2 | 3 |
| 1 | They attain advanced level of knowledge in the functional areas of business administration such as strategic management, marketing, accounting, finance, organization management, human resources, and operations management. | ✔ | |||
| 2 | They are capable of synthesizing the knowledge that they attained in the area of business administration with the knowledge base that they developed in their undergraduate specialisms. | ✔ | |||
| 3 | They are capable of identifying and analyzing legal, environmental and social factors, which influence the basic functional areas of the business administration. | ✔ | |||
| 4 | They understand and implement rational, systematic and scientific approaches effectively in problem solving and decision-making processes. | ✔ | |||
| 5 | They are capable of applying, analyzing, synthesizing and evaluating the knowledge they developed in diverse fields efficiently. | ✔ | |||
| 6 | They are capable of transferring information by using efficient verbal and written communication techniques. | ✔ | |||
| 7 | They are capable of performing professional communication effectively also in English. | ✔ | |||
| 8 | They know methods of performing efficient teamwork. | ✔ | |||
| 9 | They are capable of understanding and synthesizing academic and scientific research in their areas and able to transform such research into useful knowledge. | ✔ | |||
| 10 | They have competence in all of the stages of scientific research and processes. | ✔ | |||
| 11 | They are knowledgeable in the areas of professional ethics and responsibility. | ✔ | |||
| 12 | They are capable of utilizing their knowledge and skills efficiently in global and multicultural contexts. | ✔ | |||
| 13 | They are knowledgeable in the issues of environment, social responsibility, social justice, quality and cultural values. | ✔ | |||
| 14 | They have a creative, innovative and critical perspective. | ✔ | |||
0: No Contribution 1: Little Contribution 2: Partial Contribution 3: Full Contribution