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INTERNATIONALEMERGINGMARKETSPROJECTFINANCE

BTERMSPRING2020

Professor:PaulClifford

ProfessorOfficeLocation:TBA

OfficePhone:646-322-8053

E-mail:pdc41@columbia.edu

OfficeHours:TBA

Canvas:PleasebesuretohaveyourannouncementandmessagingnotificationssettoASAP.

TEACHINGASSISTANTS

TAName TBA

TAEmail: TBA

TAOfficeHours:TBA

COURSESHORTDESCRIPTION

ThisInternationalEmergingMarketsProjectFinance(IPF)coursewillprovidestudentswithastrongpracticalandtheoreticalframeworktobeabletoanalyzecomplexinternationalprojectsfromfirstprinciples,andwillcoverboththestructuringaspectsofthisfinancialdiscipline(commercialandlegalframeworks,keyriskandmitigants,financialmodelling)aswellasreal-worldprojectfinancecasestudies.Overall,thecourseprovidesapracticalandquantitativeapproachtounderstandingprojectfinancetransactions;focusesonenergyandinfrastructuretransactionsinemergingmarkets;integratesprinciplesofcorporatefinancewithanunderstandingofspecifictechnologies,industrialorganization,regulatoryframeworkandcountry-specificpolicies;examinesforeignexchangeissues,taxation,riskevaluationandmitigationandkeycontractualstructures;exploresthefundamentalsofInternationalProjectFinance;andcomplementsandaddstothecurrentfundamentalsofProjectFinancecourse.Thiscourseisrelevanttostudentscontemplatingcareersinfinancinginternationaldevelopmentprojects,consideringdualengineering/financedegrees,orworkingfordevelopers/sponsorsofinternationalinfrastructureprojects,privateequityinvestorsandinfrastructurefundsorinternationalfinancialorganizationssuchasMultilateraldevelopmentinstitutions(WorldBank,AsiaDevelopmentBank,Inter-AmericanDevelopmentBank,AsiaDevelopmentBank,AsiaInfrastructureInvestmentBank).

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COURSEDESCRIPTION

TheIPFcoursewillfocusondeepeningstudent’sacademicknowledgeandunderstandingofthefinancingstrategies,structuresandrisk/returnallocationsforinternationalinfrastructureprojectsindevelopingcountries.Thecoursewillspecificallyaddressandcoverthedynamicsof“South-South”infrastructureinvestment,financingandcooperationacrosstheBRIC(Brazil,Russia,India,ChinaandSouthAfrica)countries.ItwillalsoanalyzeChina’sOneBelt-OneRoadinfrastructureinvestmentinitiativeandtheemergenceandimportanceofnewGlobalfinancialinstitutionssuchastheBRICSBank(NewDevelopmentBank)andtheAsiaInfrastructureInvestmentBank,thenew“WorldBankforAsia”createdbyChina.ThecoursewillalsocovercurrentUS/AsiaenergytrendsandtheemergenceoftheUSasmajorenergysupplierandexporter.

Thecoursewillalsoanalyzesocialandenvironmentalrisksininternationalprojectsandthecurrentapproachoffinancialinstitutionstoassessandrankthesocialandenvironmentalrisksandimpactofprojectsandrelatedmitigationandmonitoringmeasuresrequiredtoensureprojectsaredevelopedinasustainablemanner.

COURSELEARNINGOBJECTIVES

Uponcompletionofthecourse,studentswillbeableto:

• Identifyandexplainkeyaspectsoffinancingforinternationalinfrastructureinvestmentprojects,potentialsourcesoffinancing(exportcreditagencies,multilateralagencies,bonds,localcapitalmarkets)aswellascurrencyandpoliticalrisks

• Applypracticaltoolsandskillsetstoanalyzerisksandbusinessopportunitiesassociatedwithinternationalinfrastructureprojectsinkeyindustrysectors,includingbutnotlimitedto,power/renewableenergy,oilandgas,miningandmetalsandinfrastructure.

• Analyzeandinterprethowdebtandequityarebalancedwithinprojectfinancingcapitalstructures,analyzeprojectpre-taxleveredandunleveredIRRanddevelopanappreciationinbreadthanddepthofthecorefinancialdocumentsandcommercialcontractsemployedinthesector.

ASSIGNMENTS

Designatethetypeforeachassignment(A-group,B-group/individual,orC-individual).

InordertoavoidambiguitythatmayleadtounintentionalviolationsoftheHonorCode,thedescriptiontypesforassignmentshavebeenstandardized.Theyarespecifiedinthetablebelow.

Type Designation Discussion of concepts

Preparation of submission Grade

A group / group Permitted with

designated group*

By the group Same grade for each member of the group

B group / individual

Permitted Individually Individual

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(No sharing of any portion of the submission)

C individual / individual

None of any kind Individually Individual

D (An optional category to be defined in detail by the individual faculty member)

* The designated group can be either an assigned study group or a self-selected one.

REQUIREDCOURSEMATERIALS

Esty,Benamin.ModernProjectFinance:ACasebook.Otherclasshandoutswillbeprovidedalongwithadditionalrecommendedreadingmaterial.

CLASSROOMNORMSANDEXPECTATIONS

Classattendanceisimportantasthecourselearningswillbuildprogressivelyoverthesemesterandprovidethefoundationforthegroupcasestudyproject.Classparticipationisencouragedandexpectedinanalyzingtheprojectcasestudies.

INCLUSION,ACCOMMODATIONS,ANDSUPPORTFORSTUDENTS

AtColumbiaBusinessSchool,webelievethatdiversitystrengthensanycommunityorbusinessmodelandbringsitgreatersuccess.ColumbiaBusinessSchooliscommittedtoprovidingallstudentswiththeequalopportunitytothriveintheclassroombyprovidingalearning,living,andworkingenvironmentfreefromdiscrimination,harassment,andbiasonthebasisofgender,sexualorientation,race,ethnicity,socioeconomicstatus,orability.

StudentsseekingaccommodationintheclassroommayobtaininformationontheservicesofferedbyColumbiaUniversity’sOfficeofDisabilityServicesonlineatwww.health.columbia.edu/docs/services/ods/index.htmlorbycontacting(212)854-2388.

METHODOFEVALUATION

Participation 20%Assignments 40%GroupCaseStudyPaper 40%

Evaluationwillbe20%fromclassparticipation,40%fromcasestudyassignment/answers,and40%fromagroupcasestudypaper.

Atthestartofthecoursestudentswillbegroupedintoteamstoprepareagroupcasestudypapertobesubmittedbeforethelastclass.Studentswillberequiredtoanalyzespecificstrategic,commercialandstakeholderissues/questionsrelatedtotheprojectcasestudy.

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