Project Financing [Hardcover]

John D. Finnerty Ph.D. (Author)

Book Description

Publication Date: January 15, 1996 | ISBN-10: 0471146315 | ISBN-13: 978-0471146315 | Edition: 1

This timely book describes an innovative financing technique, using examples and case studies such as Euro Disneyland and the Eurotunnel to walk readers through its essential steps and procedures. Analyzes the shortcomings of unsuccessful project financing attempts.

Editorial Reviews

From the Publisher

This timely book describes an innovative financing technique, using examples and case studies such as Euro Disneyland and the Eurotunnel to walk readers through its essential steps and procedures. Analyzes the shortcomings of unsuccessful project financing attempts. Comprehensive coverage includes the rationale for project financing, security arrangements, legal structure and contract options, preparing the financial plan, estimating the borrowing capacity on a project, sources of funds, and much more. The appendix features selected examples of project financing.

From the Inside Flap

Project financing is an innovative and timely financing technique that has been used on many high-profile corporate projects, including Euro Disneyland and the Eurotunnel. Employing a carefully engineered financing mix, it has long been used to fund large-scale natural resource projects, from pipelines and refineries to electric-generating facilities and hydroelectric projects. Increasingly, project financing is emerging as the preferred alternative to conventional methods of financing infrastructure and other large-scale projects worldwide. The intricacies of project financing are formidable, and can easily be misunderstood and, consequently, misused. While project financing structures share certain common features, by necessity, they require tailoring the package to the particular circumstances of the project. That is where both the benefits and the challenges lie. As an investment banker currently with Houlihan Lokey Howard & Zukin, John D. Finnerty has a wealth of experience in project financing. Now, he brings his considerable expertise to a comprehensive exploration of the facts, figures—and potential faux pas—surrounding Project Financing. What distinguishes project financing from conventional direct financing is that rather than looking to the firm’s entire asset portfolio to generate cash flow, in project financing, the project is "a distinct legal entity" and the financing is tailored to the cash flow characteristics of the project assets. Such a structure can yield a more efficient allocation of risks and returns than conventional financing, but careful financial engineering is critical. With actual examples and case studies, Project Financing takes you through the process step by step. It covers the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, and raise the funds. Along with cogent analyses of why some project financing plans have succeeded while others have failed, you’ll find detailed information on:

• Designing contractual arrangements to support project financing
• Issues for the host government—legislative provisions, public/private infrastructure partnerships, public/private financing structures
• Credit requirements of lenders, and how to determine the project’s borrowing capacity
• How to prepare cash flow projections and use them to measure expected rates of return
• Tax and accounting considerations
• Detailed case studies—including Euro Disneyland and the Eurotunnel Project—that illustrate how to apply the analytical techniques described in the book

From funding sources and contract options to security arrangements and legal requirements, Project Financing provides the most complete coverage available today.

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Product Details

• Hardcover: 384 pages
• Publisher: Wiley; 1 edition (January 15, 1996)
• Language: English
• ISBN-10: 0471146315
• ISBN-13: 978-0471146315
• Product Dimensions: 9 x 6.2 x 1.3 inches
• Shipping Weight: 1.6 pounds
• Average Customer Review: 4.4 out of 5 stars  See all reviews (7 customer reviews)
• Amazon Best Sellers Rank: #1,110,137 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

5.0 out of 5 stars One of the best books on Project Finance, January 19, 2012

By 

George Shapovalov (New York, USA) - See all my reviews
(REAL NAME)   

Amazon Verified Purchase

This review is from: Project Financing: Asset-Based Financial Engineering (Wiley Desktop Editions) (Hardcover)

As an MBA graduate from a top b-school who works in finance, I read a lot of finance related books. So far, "Project Financing: Asset-Based Financial Engineering" is the best Project Finance book I have ever read, and I read about a dozen of them. Everything is straight to the point, very clear, and supported by examples. This is not a technical guide or PF modeling textbooks for analysts, but a solid work on PF framework and strategy.

1 of 2 people found the following review helpful:

5.0 out of 5 stars Project Financing: Asset Based Financial Engineering, May 11, 2011

By 

Thomas B A Phillips - See all my reviews

Amazon Verified Purchase

This review is from: Project Financing: Asset-Based Financial Engineering (Wiley Desktop Editions) (Hardcover)

As a graduate of NYU Stern's MBA program, and a former student of finance icons Altman and Damodaran I can say with authority this is an excellent book. I read it 2x for both pleasure and application to a project at work. It is one of the top 5 MBA books I've read (Yes, I still highlighted it with multiple colors!).

Whether you are trying to grasp MBA finance for the first time or you hunger for a mind sharpening post MBA refresher, this book can actually be "fun" to read. The author, Professor Finerty of Fordham, has created a prolific student friendly book with great immediate practical application. I hope to meet him someday.

--TP, New York

2 of 4 people found the following review helpful:

4.0 out of 5 stars Good Text, December 10, 2008

By 

Reader (Arlington, Virginia) - See all my reviews
(VINE VOICE)   

This review is from: Project Financing: Asset-Based Financial Engineering (Wiley Desktop Editions) (Hardcover)

If you're forced to read a project finance text for a college course or for any other reason, then this one is pretty good. The writing is crisp and clear, the case studies are genuinely helpful, the length is manageable, and the reader isn't overwhelmed with tiny print, mindnumbing details, or esoteric math. But let's face it, it IS still a finance text...hence my four-star rating.