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Financing and Investing in Infrastructure

Approx. 11 hours to complete

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Course Summary

This course is designed to give learners an introduction to investing in infrastructure projects. It covers a range of topics from project selection and due diligence to financing and risk management.

Key Learning Points

Understand the key drivers of infrastructure investing
Learn how to evaluate and select infrastructure projects
Gain knowledge on financing and risk management in infrastructure investing

Job Positions & Salaries of people who have taken this course might have

- USA: $80,000 - $120,000
- India: ₹6,00,000 - ₹12,00,000
- Spain: €40,000 - €70,000
- USA: $80,000 - $120,000
- India: ₹6,00,000 - ₹12,00,000
- Spain: €40,000 - €70,000
- USA: $120,000 - $200,000
- India: ₹12,00,000 - ₹20,00,000
- Spain: €70,000 - €120,000
- USA: $80,000 - $120,000
- India: ₹6,00,000 - ₹12,00,000
- Spain: €40,000 - €70,000
- USA: $120,000 - $200,000
- India: ₹12,00,000 - ₹20,00,000
- Spain: €70,000 - €120,000
- USA: $100,000 - $150,000
- India: ₹10,00,000 - ₹15,00,000
- Spain: €50,000 - €90,000

Learning Outcomes

Understand the key drivers of infrastructure investing
Evaluate and select infrastructure projects
Develop knowledge on financing and risk management

Prerequisites or good to have knowledge before taking this course

Basic understanding of finance and accounting
Familiarity with Excel

Course Difficulty Level

Intermediate

Course Format

Online self-paced
Video lectures
Quizzes
Assignments

Similar Courses

Real Estate Investing
Private Equity and Venture Capital
Project Finance and PPPs

Related Education Paths

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Description

Learn how debt and equity can be used to finance infrastructure investments and how investors approach infrastructure investments!

According to the OECD, the global infrastructure investment requirement by 2030 for transport, electricity generation, transmission & distribution, and water & telecommunications totals to 71 trillion dollars. This figure represents about 3.5% of the annual World GDP from 2007 to 2030. The European Commission estimated, that by 2020, Europe will need between 1.5 - 2 trillion Euros in infrastructure investments. Between 2011 and 2020, about 500 billion Euros will be required for the implementation of the Trans-European Transport Network (TEN-T) program, 400 billion Euros for Energy distribution networks and smart grids, 200 billion Euros on Energy transmission networks and storage, and 500 billion Euros for the upgrade and construction of new power plants. An additional 38 - 58 billion Euros and 181 - 268 billion Euros in capital investment will be needed to achieve the targets set by the European Commission for broadband diffusion. Traditionally investments in infrastructure were financed using public sources. However, severe budget constraints and inefficient management of infrastructure by public entities have led to an increased involvement of private investors in the business. The course focuses on how private investors approach infrastructure projects from the standpoint of equity, debt, and hybrid instruments. The course concentrates on the practical aspects of project finance: the most frequently used financial techniques for infrastructure investments. The repeated use of real life examples and case studies will allow students to link the theoretical background to actual business practices. In the end of the course, students will be capable of analyzing a complex transaction, identifying the key elements of a deal, and suggesting proper solutions for deal structuring from a financial advisor's perspective. Course Format The course will consist of lecture videos, readings, and talks given by guest speakers. Although we do hope you will attend the entire course, it is possible to just focus on single topics. Suggested Readings The course is designed to be self-contained, there are no obligatory readings that must be acquired outside of the course. For students interested in additional study material, you may refer to: • Gatti Stefano, "Project Finance in theory and practice", Academic Press, 2nd edition, 2012.

Outline

Project Finance and the Network of Contracts
Course Overview
1.1 - Project Finance and the Network of Contracts Introduction
1.2 - What Is Project Finance?
1.3 - Financial Contracts: Shareholder
1.4 - Financial Contracts: Lenders
1.5 - Metro 5 #1
1.6 - Industrial Contracts
1.7 - Metro 5 #2
1.8 - Module 1 Takeaways
Additional Material
Grading Policy
SLIDE SET WEEK 1
About Quizzes - Read Carefully
Quiz 1 - ProjectCo Case
Project Finance and the Network of Contracts

Syndicate
2.1 - Syndicate Introduction
2.2 - What Is a Syndicate?
2.3 - What Roles Do Banks Perform?
2.4 - Which Syndication Strategy Can Be Used?
2.5 - How Much Does the Customer Pay?
2.6 - How Has the Financial Crisis Reshaped the Market?
2.7 - Takeaways
SLIDE SET WEEK 2
Syndicate

Risk Analysis
3.1 - Introduction - The Need of Risk Management
3.2 - Risk Taxonomy
3.3 - Pre-Completion Risks
3.4 - Post-Completion Risks
3.5 - Risks Common to Both Phases
3.6 - The Risk Matrix and Takeaways
SLIDE SET WEEK 3
Risk Analysis

Capital Budgeting
4.1 - Project Finance and the Set up of Capital Budgeting
4.2 - Setting Up The Construction Phase Budget
4.3 - How to Finance Construction
4.4 - Exercise #1: Construction Phase Budgeting
4.5 - Setting up the Operational Phase Budget
4.6 - Exercise #2: Operational Phase Budgeting
4.7 - Takeaways
SLIDE SET WEEK 4
Capital Budgeting

The Financial Sustainability of an Infrastructure Project
5.1 - Introduction
5.2 - Profitability for Shareholders
5.3 - Profitability for Creditors
5.4 - From Profitability to Financial Sustainability
5.5 - Cover Ratios
5.6 - Cover Ratio Calculation
5.7 - Takeaways
SLIDE SET WEEK 5
The Financial Sustainability of an Infrastructure Project

How Can Creditors Protect Themselves?
6.1 - Introduction
6.2 - Security Package
6.3 - Covenants of the Credit Agreement
6.4 - How to Use Cover Ratios to Monitor the Borrower
6.5 - Loan Amortization Methods
6.6 - Application of Different Amortization Methods
6.7 - Takeaways
SLIDE SET WEEK 6
How Can Creditors Protect Themselves?

Additional Videos and Final Quiz
7.1 - CASE STUDY: Bonollo Energia
7.2 - CASE STUDY: Port De Paita
Final

Summary of User Reviews

Read reviews for Infrastructure Investing course on Coursera. Learn what users think about this course, including their overall rating, and find out the key aspect that many users thought was good.

Key Aspect Users Liked About This Course

The course provides a comprehensive understanding of infrastructure investing.

Pros from User Reviews

Suitable for beginners and experts
Well-structured and organized content
Engaging and knowledgeable instructors
Real-world examples and case studies
Great networking opportunities

Cons from User Reviews

Some technical jargon can be difficult to understand
Not enough practice quizzes or assessments
Some lectures can be too long and dry
Limited interaction with instructors or peers
Not enough emphasis on emerging trends and technologies

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