Project Financing Electricity Projects with Senior Debt : A Practical Guide / by Yandisa Nongena.

Format:

Book

Author/Creator:

Nongena, Yandisa.

Series:

Energy Series

Language:

English

Subjects (All):

Power resources.

International finance.

Statistics.

Business enterprises--Finance.

Business enterprises.

Natural Resource and Energy Economics.

International Finance.

Statistics in Business, Management, Economics, Finance, Insurance.

Corporate Finance.

Local Subjects:

Natural Resource and Energy Economics.

International Finance.

Statistics in Business, Management, Economics, Finance, Insurance.

Corporate Finance.

Physical Description:

1 online resource (727 pages)

Edition:

1st ed. 2026.

Place of Publication:

Cham : Springer Nature Switzerland : Imprint: Springer, 2026.

Summary:

This book is a guide to project financing, primarily used to fund infrastructure projects. While it focuses on electricity projects, its insights can be applied across various sectors. It employs a P&L statement as a framework for approaching deals, with CFADS at its core. It introduces fundamental building blocks to ensure CFADS remains predictable, mechanisms to safeguard its predictability, warning signals for material deviations, and a system of incentives and penalties to manage potential disruptions—all within the structure of a P&L statement. In summary, this is a practitioners’ guide in every sense. It sets minimum advisory standards expected by lenders, defines risk-informed contractual clauses that enable commercially bankable agreements, and provides calculations and assumptions necessary for determining debt size—irrespective of borrower structure or lending arrangements.

Contents:

What is project financing? – A functional definition, highlighting project & lender configurations

Profit and loss statement – Essence to distil CFADS, size debt and equity to fund a project

Making CFADS (& DS) predictable – focusing on each line item of P&L statement

How to protect CFADS (& DS) predictability – Focus on each line of P&L statement

Setting up alarms and policing – Deviation of CFADS and DS and potential causes thereof

Setting timings – periods starts and ends, business days notices and days to deliver

Loan Market Association (LMA) precedent – Don’t reinvent the wheel but pick ‘n chose

Security package – In case it all goes pear shaped

Ancillary facilities – Other often necessary or advisable finance needs in one package

CPs – Confirming facts before committing to lend

Portfolio management – Policing compliance with credit/facilities agreement

Respect established processes & negotiators’ limitations – No mandate to re-engineer processes

Basics of electricity and technologies therein

Vertically integrated electricity monopolies – One end of regulatory spectrum

Liberalised electricity markets – The other end of regulatory spectrum

Investment support regimes – They differ by country and over time! Know what to lookout for?- Electricity market advisors – Price forecasts and insights beyond price forecasts

Datacentres – Their valuation reports and resilience thereof as off-takers

Due diligence: Understanding its general intricacies

Legal due diligence – The details that matter and why?- Technical due diligence – The details that matter and why?- Insurance due diligence – What details matter and why?- Tax due diligence – What to lookout for and why?- Model audit – What a model auditor looks for and confirms to lenders

Lender's scepticism and curiosity – Closing due diligence gaps and operational reporting cracks

Single/multiple project vs numerous projects – Materiality informs DD and mitigation needs

Online, realtime and collaborative due diligence – Live Diligence™ experience

The project financing process – From courting, conception, cradle to grave

Typical meetings and calls – Timetable and workflow on the March to financial close

Leverage finance vs project finance –Chalk and Cheese

Epilogue: The need for further edition of this book

My project finance teachers – A roll call.

Notes:

Print version record.

ISBN:

9783032162106