Financing and Investing in Infrastructure

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.

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Syllabus

Syllabus - What you will learn from this course
Week 1
Project Finance and the Network of Contracts
Week 2
Syndicate
Week 3
Risk Analysis
Week 4
Capital Budgeting
Week 5
The Financial Sustainability of an Infrastructure Project
Week 6
How Can Creditors Protect Themselves?
Week 7
Additional Videos and Final Quiz

FAQ

When will I have access to the lectures and assignments?

Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:

What will I get if I purchase the Certificate?

When you purchase a Certificate you get access to all course materials, including graded assignments. Upon completing the course, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

Is financial aid available?

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

Reviews

Excellent course !!! Provides useful insights into the Infrastructure/Project Finance. Professor has dealt the subject in such a lucid and measured way that it was heart filling experience.

I enjoyed the course. The material is well explained, good details and examples. Gives a good base of Project finance with focus on the insfrustructur phases and the relevant risks and solutions.

Great course and great professor! I think this really helps me to understanding the fundamental knowledge of project finance. I think the additional study materials are really worth reading!

Very informative course. It is well structured. I would suggest to bring in more financial mathematics to give a more realistic picture of modelling of infrastructure