Project financing: financial instruments and risk management

Table of content:
Contents:
How LASMO Rode the Waves and Struck Black
A Good Relationship for All Stakeholders
How Lenders Appraise Credit Risk in General
Credit Appraisal When Financing a Project
Risks That a Lender May Assume
A Good Sponsor Relationship
Types of Equity Capital and Debt
Sources of Equity and Debt
Types of Financial Instruments Used in Project Financing
Commercial Paper and Back-Up Credit Facilities
Term Loans and Private Placements
Guarantees
General Principles of Leasing and Types of Leases
International Leasing
Overview of Risk Management
Controlling Risk Using Listed Derivatives
Controlling Risk via Risk-Sharing Derivative Contracts: Swaps
Controlling Risk with Customized Derivatives and Agreements
The Influence of ESG on Project Finance
Sirius: A Start That Fell to Earth

[https://www.worldscientific.com/worldscibooks/10.1142/12137?srsltid=AfmBOoqHl3jT5EFDztOEmpSLG_BLKwiv8v0CIwxjDFeqhzNIUoI-7La5#t=aboutBook]

The book describes the different tools and techniques available to anyone who is engaged in providing funding or advice to a project. Project finance is ultimately about applying three basic principles to a funding situation and from these three, all the other ideas flow including contracts. First, there needs to be a cash flow coming from the project that is capable of being captured by finance providers. Second, there needs to be a group of assets that can be segregated and contained by making sure they cannot be taken away by other parties and thirdly there needs to be a risk envelope that is well understood and managed dynamically during the project's life. To do this, a network of contracts must exist to support the rights of the different stakeholders and their legal claims on the project. In this book the authors examine all of these aspects and provide some examples/mini-cases of project structures and approaches. The book begins and ends with a longer case study of two projects that were standalone examples of project financing and controversial for different reasons at the time of their fundraising.
(https://www.worldscientific.com/worldscibooks/10.1142/12137?srsltid=AfmBOoqHl3jT5EFDztOEmpSLG_BLKwiv8v0CIwxjDFeqhzNIUoI-7La5#t=aboutBook)