Chapter 12 Project Finance David Gardner and James Wright HSBC Introduction The purpose of this chapter is to provide an overview of Project Finance. This chapter will outline what Project Finance is, the key features which distinguish it from other methods of financing, the motivations and circumstances for utilising it and the typical structuring considerations therein. Moreover, it will be shown to be a method of infrastructure finance 1 which has become increasingly relevant in the wake of the
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Financial Terms and Roles 1. Finance is described as the study how businesses and people evaluate investments and reuses capital to fund them. 2. Efficient Market is described as a market where are relevant information is open to the public, at the same time and when prices respond quickly to the available information. 3. Primary Market is described as a financial market where there is newly issued securities are being offered to the public. 4. Secondary
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School of Banking & Finance for FINS 1613 S1 2010 June 7, 2010 ∗ These notes are preliminary and under development. They are made available for FINS 1613 S1 2010 students only and may not be distributed or used without the author’s written consent. ∗ 1 A s ae o . s h r d n. . Problems on Raising Capital and Venture Capital John is the founder of Prospects Technologies. Prospects is a high technology firm with great prospects. In 1999, John needed capital to finance growth. SkyHigh Venture
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Projecting Financial Trends Companies should be aware of economic factors when managing the organization’s finances. Economic factors provide a lot of useful information to organizations when deciding upon important financial decisions. Economic factors, such as inflation, complicate these financial decisions. “In a world of rational investors and financial institutions, corporate managers should analyze investment opportunities either by discounting the relevant nominal flows
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Midland Energy/Sample 2 Midland Energy Resources, Inc. Midland Energy Resources, Inc. is a global energy company that operates in oil and gas exploration and production (E&P), refining and marketing (R&M), and petrochemicals. Midland’s most profitable segment is its E&P division which produces 67% of the company’s net income (Exhibit 3). Its largest division is R&M with the Petrochemical division being the smallest. The primary goals of Midland’s financial strategy are to fund substantial
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The Malaysian Financial System CCP-FSPC 1-1 Chapter 1 – The Malaysian Financial System Content Outline 1. The Banking System ............................................................................. 1-2 2. The Functions and Responsibilities of Monetary and Non-Monetary Institutions ............................................................................................. 1-6 3. The Functions and Responsibilities of Non-Bank Financial Intermediaries.................................
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To evaluate the financial health and expected growth of Automatic Data Processing Inc., there are a few ratio analyses that can be looked at. The return on assets ratio analysis is a good indicator to see how profitable ADP Inc. is doing relative to its assets. Below is a line graph referring to the past five years of ADP’s ROA. In 2010, one can see that it started off well, but then started to decline until 2011. This occurred because there was a decline in employment as well as an increase in failed
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credit sales into cash. In factoring, a financial institution buys the accounts receivable of a company (Client) and pays up to 80%(rarely up to90%) of the amount immediately on agreement. Factoring company pays the remaining amount (Balance 20%-finance cost-operating cost) to the client when the customer pays the debt. Collection of debt from the customer is done either by the factor or the client depending upon the type of factoring. The account receivable in factoring can either be for a product
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Assignment Cover Sheet STUDENT DETAILS Name: Brad Hall Student Number: GS715 Trimester: ASSIGNMENT DETAILS Lecturer: Vivienne Buss Unit Title: Managing Finance Assignment Code: ATF1 Assignment Title: Analysis of Financial Statements Due Date: 29 May 2014 Date Submitted: 28 May 2014 Word Count: 3190 DECLARATION I certify that this assignment is entirely my own work except where I have fully documented references to the works of others, and that the material contained in this assignment has not
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000 $100,000,000 Total Assets $383,253 $430,550 Total Liabilities $153,890 $203,890 Shareholders' Equity $229,363 $226,660 Debt/Asset 0.40 0.47 Debt/Equity 0.67 0.90 The debt to equity ratio is going to increase because you are going to use more debt and less equity to finance your business. This reduces the shareholders' risky because in the case of bankruptcy, shareholders are the first people who lose money. The cost of equity at 11% in 2006 is a more expensive way of financing
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