Structure does affect value! Project Finance provides an alternative to Corporate Financing and creates an important realistic laboratory to study capital structure, risk management, valuation, contracting, and corporate governance. The complex cases provide a bridge from Corporate Financial Theory to actual projects and financial practice.During the ongoing process of globalization many countries, both developed and emerging, are creating opportunities for the development of extremely large projects. These projects are in excess of $500 million US dollars and are very difficult to design, build and operate successfully. In order to mitigate the risks involved with these mega-projects, companies and governments both are interested in creating stand-alone entities that are successful or fail on their own merits, leaving the initiating organizations un-affected. These projects create unique opportunities to study the effects of many of the underlying questions discussed in corporate finance. For example, the separation of the financing and investment decision, alternative governance systems, the discipline created by high leverage commitments and how to structure risk mitigation strategies. The cases provide vehicles to address many unresolved issues in Corporate Finance. In the area of cost of capital, two troublesome situations are explored. How does a firm compute the cost of capital for a project in an emerging economy? The other, how to value a project when there is no target capital structure throughout the life of the project.Another difficult issue is the process of risk mitigation for a one-project entity. What affect does the lack of diversification benefits have on the firm%E2%80%99s valuation? How can risk be best allocated among the stakeholders%E2%80%99 of the project? In these large projects risk must be addressed in the construction, start-up and operating phases of the project. Which stakeholders can bear these risks at the lowest cost?High leverage is common in Project Finance. Debt maturities are seldom longer than fifteen years. Thus, debt repayments must be sculptured to the forecast of the project%E2%80%99s cash flows. This results in the sophisticated use of senior and mezzanine financing vehicles which requires insightful financial modelling.The lectures will focus on various Project Financing structures and the risks involved with these projects around the world. The course will emphasize complex real world cases that illustrate both the successful and failed projects in both developed and emerging countries.

Course leader
Teacher: Alan Frankle: http://business.academickeys.com/whoswho.php?dothis=display&folk[IDX]=64885

Target group
Master's level.Students holding a relevant bachelors degree within Business Administration.

Fee info
EUR 667: Price: Students holding a preapproval including exchange students do not pay for the course.ONLY Free-mover students and Tomplads students MUST pay for the course: Danish and EU/ES (tomplads): 667 EURNON-EU-ES students (free-mover): 998 EURBooks, course materials, social programme, and housing are not included in the tuition fee. Also be aware of course specific expenses mentioned in the description.

Scholarships
No scholarships available.

Aarhus University
Address: International Centre, H%C3%B8egh Guldbergsgade 4-6
Postal code: 8000
City: Aarhus
Country: Denmark
Website: www.au.dk/summeruniversity
E-mail: dfs@au.dk
Phone: +4551335274