Project Financing: Asset-Based Financial Engineering

As the Financial Environment Continues to Evolve, so will the Field of Project Financing

In order to keep up with this dynamic discipline, you need the most up–to–date information possible. That′s why author John Finnerty has returned with the Third Edition of Project Financing. While written to reflect current conditions and address how project financing continues to enjoy a prominent place among the most important financing techniques in the global economy this reliable resource still remains true to the previous edition′s successful approach of making a complex topic understandable. Using updated examples and case studies, including Euro Disneyland, the Eurotunnel Project, and a cogeneration project, that skillfully illustrate how to apply the analytical techniques described in the book, this new edition covers the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, raise the funds, and much more.

Drawing on his vast experience in the field, Finnerty details 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 interested parties, and how to deal with government, legal, tax, and financial issues. Along the way, Finnerty offers up–to–date insights on everything from how political risks can adversely affect a project and modeling project cash flows to international debt financing.

In addition, this Third Edition contains completely new chapters on Sharia–compliant project financing as well as the analysis and financing of renewable/sustainable projects. Here, you′ll gain a firm understanding of how Sharia–compliant financing can be tailored to large projects in Islamic regions of the world and discover the special considerations that come into play with renewable/sustainable project financing.

Easily the most complete, up–to–date explanation of the topic available today, Project Financing, Third Edition blends sound research–based theory with practical hands–on advice to illustrate all of the steps necessary to successfully finance a project in today′s competitive business environment.

Praise for the Previous Edition of Project Financing

"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, former 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 School of Business, 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, Edwin L. Cox School of Business, Southern Methodist University

About the Author

John D. Finnerty, PhD, is Professor of Finance at Fordham University′s Graduate School of Business and served as the founding director of the MS in Quantitative Finance Program. He is also Managing Principal of Finnerty Economic Consulting, LLC, which specializes in business valuation, securities valuation, solvency analysis, calculation of damages, and litigation support. Finnerty has testified as an expert in valuation, securities, and other financial matters in federal and state court, and in arbitration and mediation proceedings. His research focuses on corporate finance, including project financing and fixed income securities and derivatives valuation. Finnerty has published thirteen books, including the first and second editions of Project Financing, and more than one hundred articles and professional papers. He is a former president and director of the Fixed Income Analysts Society, and a former president, director, and chair of the trustees of the Eastern Finance Association. Finnerty is a trustee of the Eastern Finance Association and a Director of the Financial Management Association. He was inducted into the Fixed Income Analysts Society Hall of Fame in 2011.