Product Description

Praise for Project Financing, First Edition

"Owing to his teaching as a finance professor and as an experienced investment banker, John Finnerty brings to his book, Project Financing, an insightful perspective, blending the theoretical with the practical."
—Zoltan Merszei, former chairman, president, and CEO, The Dow Chemical Company

"Finnerty has managed to distill the complexities of project financing with its myriad components and variations. Clear, practical, and in-depth, Project Financing is a valuable user's guide for project sponsors, regulators, host governments (local and foreign), and financiers alike."
—Ricardo M. Campoy, Director, Kilgore Minerals Ltd.

"Project Financing warrants a place in the essential libraries of corporate financial managers, their advisors, senior strategists, bankers, large private investors, government officials, and anyone who aspires to master innovation in corporate finance."
—Robert F. Bruner, Dean and Charles C. Abbott Professor of Business Administration, Darden Graduate School of Business Administration, University of Virginia

"This book is the first comprehensive treatment of project financing. It provides an invaluable contribution to financial management literature and practice."
—Andrew H. Chen, Distinguished Professor of Finance, Southern Methodist University

Product Details

• Amazon Sales Rank: #345692 in Books
• Published on: 2007-05-04
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 496 pages

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

As an effective alternative to conventional direct financing, project financing has become one of the hottest topics in corporate finance. It's being used more and more frequently—and more successfully—on a wide variety of high-profile corporate projects, and has long been used to fund large-scale natural resource projects, from pipelines and refineries to electric-generating facilities and hydroelectric projects. But the challenges of successful project financing are immense, and the requirements of the process can easily be misunderstood.

This newly updated edition of Project Financing takes you through the process step by step. Using actual examples and case studies—including Euro Disneyland and the Eurotunnel Project—that illustrate how to apply the analytical techniques described in the book, it covers the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, and raise the funds.

John Finnerty draws on his vast experience in the field to detail each step of the process, describing the circumstances in which it is most likely to be advantageous, how to craft contractual arrangements to allocate risks and rewards among the interested parties, and how to deal with government, legal, tax, and financial issues. Finnerty has fully revised his original classic work to include up-to-date material on the rationale for project financing, assessing risk, security arrangements, legal structure and contract options, preparing the financial plan, estimating the borrowing capacity of a project, legal requirements, and much more.

In addition, he has added completely new chapters that cover the role of financial institutions that finance large projects, analytical tools that are increasingly useful in capital budgeting, and techniques for hedging project risks. His latest research draws from the work of renowned Harvard researcher Benjamin C. Esty and illustrates in detail why some project financing plans have succeeded while others have failed.

For corporate finance professionals, CFO's, financial analysts, project planners, and private investors, Project Financing, Second Edition demystifies the complexities of project financing and provides an invaluable guide for anyone who wants to master innovation in corporate finance today.

From the Back Cover

Praise for
Project Financing
First Edition

"Owing to his teaching as a finance professor and as an experienced investment banker, John Finnerty brings to his book, Project Financing, an insightful perspective, blending the theoretical with the practical."
—Zoltan Merszei, former chairman, president, and CEO, The Dow Chemical Company

"Finnerty has managed to distill the complexities of project financing with its myriad components and variations. Clear, practical, and in-depth, Project Financing is a valuable user's guide for project sponsors, regulators, host governments (local and foreign), and financiers alike."
—Ricardo M. Campoy, Director, Kilgore Minerals Ltd.

"Project Financing warrants a place in the essential libraries of corporate financial managers, their advisors, senior strategists, bankers, large private investors, government officials, and anyone who aspires to master innovation in corporate finance."
—Robert F. Bruner, Dean and Charles C. Abbott Professor of Business Administration, Darden Graduate School of Business Administration, University of Virginia

"This book is the first comprehensive treatment of project financing. It provides an invaluable contribution to financial management literature and practice."
—Andrew H. Chen, Distinguished Professor of Finance,Southern Methodist University

Customer Reviews

Good book!
This book is great to develop a good understanding of Principles of project finance. The treatment is practical and reiterates the concepts through case studies.

Good Text
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.

Calculation error in Chapter 7 ?
Is there a calculation error in Chapter 7? The example is for calculating ATCF of Rocky Mountain project. The initial equipment investment of $55M is capitalized with $5M residual value. $5M of the $6M startup cost is also capitalized. However, the depreciation taken over the next 10 years is only $5M [$55M - $5)/10]. The capitalized $5M startup cost seems to be forgotten. Anyone else noticed this?