© 2008 Bank Training & Development Ltd. © 2017 Global Project Finance Advisory Council. All rights reserved. Slide 1 Global Project Finance Advisory Council (“GPFAC”) February 2018 Business Confidential Introduction
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 1
Global Project Finance Advisory Council
(“GPFAC”)
February 2018
Business Confidential
Introduction
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 2
Agenda
Introduction to Global Project Finance Advisory Council
(“GPFAC”)
Experience
Services offered
What differentiates us?
Team
Contact us
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 3
Introduction to GPFAC
➢ The Global Project Finance Advisory Council (“GPFAC”) was
established by Alok Mathur in 2017■ In 2005, Mr. Mathur established Development Capital & Financing, LLC
(“DC&F”) in the State of Connecticut
■ DC&F owns a trademark to conduct business as GPFAC
■ In 2017, GPFAC entered into a Joint Venture with Enervest Capital, LLC, an
outsourced investment firm established in 2009, and a strategic partnership
with Ascending Markets Financial Guarantee Corp. (a company that intends
to offer loan guarantees in local currency in the Emerging Markets)
➢ GPFAC has assembled highly seasoned project finance
professionals (the “Principals”) with a successful track record■ Closed $110.5 billion worldwide
■ $24 billion in renewable energy alone
Leading edge provider of financial advisory, modeling, and
training services for power, renewable energy, oil & gas, and
infrastructure projects worldwide
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 4
GPFAC experience
Billion USD
US/Canada Latin America Europe Middle East/Africa Asia
65.2
13.7
15.8
8.0
7.9
$110.5 billion closed worldwide, $24 billion in renewable energy
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 5
Services Offered
➢ Financial advisory services
➢ Financial modeling
➢ Training
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 6
Financial Advisory Services
➢ Structuring and credit support
➢ Due diligence
➢ Portfolio management
➢ Strategy and policy support
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 7
Financial Advisory Services – cont’d.
Structuring and credit support
➢ GPFAC will act as Financial Advisor to a project during the
development, financing and closing stages:
■ Support the negotiation and structuring of commercial contracts and agreements –
ensure project bankability
■ Review consistency of model assumptions with various contracts
■ Perform a credit assessment of the counterparties
■ Coordinate work with consultants (Independent Engineer, market, insurance, legal, and
others)
■ Perform risk analysis and develop strategies to mitigate these risks
■ Optimize the financial structure
■ Design an appropriate security package
■ Support the appointment of Lead Arrangers
■ Provide support to the Lead Arrangers during the syndication process
■ Negotiate appropriate covenants in the loan documents
■ Prepare the Preliminary Information Memorandum
■ Drive the financial closing process
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 8
Financial Advisory Services – cont’d.
Due diligence services
➢ GPFAC can conduct a comprehensive review of a project
finance transaction
■ Produce a due diligence report that outlines
✓ Critical risks
✓ Possible solutions to mitigate these risks
✓ Conclusions and recommendation
■ This service can help drive the closing process
✓ By focusing resources on the major deal breakers from a financing standpoint
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 9
Financial Advisory Services – cont’d.
Portfolio management services
➢ Map the portfolio and manage resources
■ Screen each project in the portfolio, using a uniform methodology, across indusry and
geographic locations, to identify critical issues and propose solutions
■ Assess the quality of each project in the portfolio by rating the top 10 drivers and
assigning a score for each project
■ Assess the profitability of each project
■ Classify each project in the portfolio based on its quality and profitability
■ Map the portfolio to assess the relative value addition of each project
■ Establish a rational basis to allocate resources for projects under development
■ Guide strategic portfolio decisions, including acquisition and divestiture
➢ Supplement existing resources with day-to-day support for monitoring,
reporting, restructuring (if needed), and management of transactions
➢ Reduce the risk of potential write-offs by
■ Reviewing existing policy and procedure manuals, or helping develop new manuals
■ Incorporating uniform credit standards across an organization to monitor projects and
report performance
■ Training employees on policies and implementation
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 10
Financial Advisory Services – cont’d.
Project quality
60 to 89 90 to 119 Over 120
Plot projects with the area of the circle representing the size of each project (different color for each industry)
AB
C
D
L
N
K
G
F
E
O
P
H
J
I
M
Oil & gas
Process/petrochemicals
Infrastructure
Industry legend
(Screening score)
(EB
ITD
A /
capital cost)
No
min
al
retu
rn
Ove
r 25%
p.a
.B
elo
w 1
5%
p.a
.15%
to 2
5%
p.a
.
Drive closing process(Projects A, B, C)
Low hanging fruit
Borderline economics
Critical issues
Poor economics
Drop dead issues
Appropriate strategy Resources
Highest
Negotiate improved economics High
Focus on resolving critical issues Moderate
Establish deadline for acceptable economics Low
Establish limited budget to solve drop-dead issues Lowest
Map portfolio
Manage resources
Portfolio management services – cont’d.
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 11
Financial Advisory Services – cont’d.
Strategy and policy support
➢ Support clients and Host Governments in strategy and project
preparation to catalyze institutional investment
➢ Services include:
■ Review of poilcy framework for institutional investment
■ Commercial and financial review of the project documents available to
bidders (request for proposals, concession agreement, implementation
agreement, etc,)
■ Review security package offered to lenders and assess bankability
■ Recommendations
➢ GPFAC has unique insight into privatization in the Emerging Markets
■ Closed pioneering deals worldwide (US, UK, Italy, Turkey, India, Malaysia,
Colombia, Mexico, Venezuela, Morocco, Côte d’Ivoire, and South Africa)
■ Advised Host Governments in privatization efforts
■ Understand international lenders and investors (having played these roles)
■ Can guide the creation of an investor-friendly environment
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 12
Financial Modeling Services
➢ Project finance models
During the project development phase
➢ Asset management models
During the operating phase
© 2008 Bank Training & Development Ltd.
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Financial Modeling Services – cont’d.
Project finance models
➢ GPFAC uses its Base Financial Model as the starting point (as it incorporates the standards required by auditors)
➢ The model has two components
➢ Customized component (project-specific, feeds the chassis)
Assumptions
Construction Financing
Depreciation
EBITDA
Cash Waterfall and Debt Repayment
➢ Chassis (not project-specific)
Net Income
Sources & Uses of Funds
Balance Sheet
Cash Flow
Capital Account & Tax Basis
Taxable Income
These worksheets are project-specific
and are always modeled from scratch
These worksheets form the chassis
(formulas do not change from one deal to
the next). These are already pre-
programmed in the Base Financial Model
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 14
Project finance models – cont’d.
➢ The Base Financial Model follows rigorous modeling discipline
✓ Always starts a project from zero✓ Automates schedules, wherever possible (e.g.
project timing, depreciation schedules, etc.)
✓ Residual value assumption at end of horizon
captures full economic value of the project✓ Does not hide cells, rows, columns, or worksheets
✓ Labels each worksheet with date, scenario being
analyzed, page number, etc.
✓ Each tab clearly shows what is used from other
worksheets (makes formulas easier to read)
✓ Manual data only entered on the first worksheet
(comprehensive list of assumptions)✓ Uses the same formula across every row and
footnotes an explanation of the formula
✓ Switches incorporated to facilitate sensitivity
analysis and scenario building
✓ Avoids using macros, in general (if essential, they
are meticulously documented)
Financial Modeling Services – cont’d.
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 15
Project finance models – cont’d.
➢ The chassis includes a ‘Total’ column to demonstrate to the auditor that tests for the following fundamental accounting identities have been met
■ Cumulative Pretax Income= Cumulative Taxable Income
= Cumulative EBITDA – Cumulative Interest + Residual Value – Capital Cost
■ Cumulative Distributions = Cumulative Pretax Income + Equity
■ Balance Sheet = 0 (at the end)
■ Capital Account and Tax Basis = 0 (at the end)
Efficient process to create a reliable project model
■ That is of a manageable size
The Base
Financial
Model
meets all
auditing
standards
Financial Modeling Services – cont’d.
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 16
Asset management models
➢ GPFAC does not, in general, recommend that the Base
Financial Model, used during the development and financial
closing phase, be used to monitor a project during operations
■ Closing models rarely reflect the actual cost of construction, because of
change orders during construction or Force Majeure events
■ Monitoring models do not need a complex front-end that details construction
financing and loan repayments calculations
■ Monitoring models focus on actuals vs budget for the near term
➢ Asset management models must reflect reporting requirements
and comply with loan covenants
GPFAC develops a custom asset management model
Financial Modeling Services – cont’d.
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 17
Training Services
➢ Classroom instruction
➢ Experience-based learning
➢ Mentoring
Classroom instruction includes two highly-rated
workshops (information available upon request)
➢ 4-day workshop on Project & Structured Finance
➢ 2-day workshop on Financial Modeling
© 2008 Bank Training & Development Ltd.
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Training Services – cont’d.
Classroom instruction
➢ GPFAC offers a broad range of training modules in the area of project finance and financial modeling, including the following courses
■ Limited recourse project finance
■ Risk management & mitigation
■ Project screening
■ Negotiation
■ Global financing
■ Loan syndication
■ Joint development agreement
■ Sales forecasting
■ Financial modeling
© 2008 Bank Training & Development Ltd.
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Training Services – cont’d.
Classroom instruction – cont’d.
➢ GPFAC Principals have been delivering these workshops for over 30 years to various clients worldwide:
■ United States
■ Canada
■ Latin America (Brazil, Colombia, Mexico, Venezuela)
■ Europe (France, Germany, Italy, Sweden, Switzerland, UK)
■ Middle East (Lebanon, Saudi Arabia)
■ Asia (India, China, Malaysia)
➢ Sample clients include:■ Companies (ABB, GE Capital, private equity firms (confidential))
■ Government-owned instritutions (US Department of Energy, PDVSA)
■ Banks and financial institutions (European Bank for Reconstruction &
Development, National Commercial Bank)
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 20
Training Services – cont’d.
Classroom instruction – cont’d.
➢ Customized classroom instruction program to meet client’s
requirements
➢ Off-the-shelf, 4-day program on project finance with a business
perspective (not addressed in other programs)■ It introduces a methodology to screen projects
✓ A lot of time and resources are expended pursuing project that do not go ahead
■ It underlines the importance of bankable commercial contracts and how the
individual goals and objectives of participants in a commercial negotiation
often make these contracts unacceptable to lenders
✓ Also introduces a framework for formulating and implementing negotiation strategy
■ It discusses the key provisions of a Joint Development Agreement
✓ Entered into by sponsors during the development phase
■ The program also covers the broad credit and financing aspects of these
projects, including: project structure, collateral and security package,
contract provisions, the risks and rewards of each role, loan documentation,
risk assessment, risk mitigation, and financial structuring
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 21
Training Services – cont’d.
Classroom instruction – cont’d.
➢ Off-the-shelf, 2-day program on financial modeling■ Practical understanding of the fundamentals of financial modeling
■ GPFACs Base Financial Model
✓ Provided to participants
✓ With a detailed explanation of the formulas in each spreadsheet
■ Step-by-step instructions to create a sophisticated model for their
transactions
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 22
Training Services – cont’d.
Experience-based learning (“EBL”)
➢ Extension of Classroom Instruction that enables rotational
employees to gain a practical understanding of other
departments in an organization■ Through short-term assignments (typically of 3-6 months duration)
■ Objective, over time, is to improve job performance and promote a common
credit culture within the organization
➢ GPFAC has developed the key requirements for success
➢ Prepared a set of administrative guidelines to implement an EBL
program■ Based upon best practices in the industry
■ With a detailed framework containing all the administrative tools necessary
to implement a successful program
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 23
Training Services – cont’d.
Mentoring
➢ Mentoring is the third leg of a comprehensive training program■ An employee (the “Mentee’) is matched with a Mentor with the objective of
facilitating the Mentee’s personal and professional career growth
■ Synergistic with Classroom Instruction and EBL
■ However, the duration of a Mentor-Mentee relationship generally is of a
significantly longer duration
■ Benefits to an organization include
✓ Better career development of employees
✓ Increased retention rates
✓ Higher productivity
■ Key challenge is ensuring that the role of the Mentor does not undermine the
role of the employee’s supervisor
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 24
Training Services – cont’d.
Mentoring – cont’d.
➢ GPFAC has developed the key requirements for success
➢ Prepared a set of administrative guidelines to implement a
Mentoring program■ Based upon best practices in the industry
■ Guidelines include a detailed framework containing all the administrative
tools necessary to implement a successful program
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 25
What differentiates us as financial advisors?
➢ Experience with industrial companies and major contractors
■ Deep understanding of bankable contracts and commercial issues
➢ Experience across the financial services sector
■ Played roles of financial advisor, underwriter, developer and equity investor
■ Understand lender and investor perspective
➢ Unique experience with renewable energy
■ $24 billion in utility-scale solar, wind, biomass, and nuclear energy projects
➢ Extensive US and Emerging Market experience
GPFAC Principals get it right the first time
■ Increasing the probability of success
■ Dramatically reducing development time and cost
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 26
What differentiates us as financial modelers?
➢ GPFAC has developed a unique approach to building project
finance models
■ Modeling performed by project finance experts, not Excel programmers
■ The approach is based on customizing only project-specific variables
✓ The built-in chassis takes care of the financial statements
✓ Streamlines model building and focuses attention on the key business variables
■ Reduces the risk of mistakes (through built-in checks)
■ The models pass all audit standards
■ Models are always of a manageable size
■ Well documented and easy-to-use
➢ GPFAC proposes simpler models for asset management
■ To more accurately reflect the requirements during the operating phase
Approach validated by major organizations worldwide
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 27
What differentiates us as trainers?
➢ Content is not boiler-plate material downloaded from the Internet
➢ Focus is on real knowledge, reinforced through practical
examples, with tools that people can use on the job
➢ The programs have realistic, attainable learning objectives
➢ Learning by doing (quizzes, exercises, case studies, simulated
negotiation)
➢ Engaging, animated workshops (nobody falls asleep)
➢ Instructors are full-time practicing project finance and modeling
professionals with extensive financial closing experience■ Not academics with limited closing experience
Programs have been demonstrated worldwide
■ Including a comprehensive training program with Classroom Instruction,
Experience-Based Learning, and Mentoring for the US Department of Energy
© 2008 Bank Training & Development Ltd.
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Team
Fabio Castellanos (Principal)Based in Colombia with extensive experience in Latin America. Closed $6 billion in various corporate and export
finance transactions; Worked with Chase Manhattan Bank for 23 years in Colombia (Responsible for Corporate
Finance), Argentina (Senior Credit Officer), and New York (Credit Officer, Western Hemisphere). Country Manager for
ABN Amro in Colombia; CEO Program (Universidad de Los Andes); B.S Business Administration (California State
Polytechnic University); Speaks Spanish, English, Portuguese, and Italian.
Paul Barbian (Principal)Closed over $19 billion of project transactions worldwide. Led the Union Bank of Switzerland project finance group in
Zurich. Led a team of analysts for the Credit Origination team at the US Department of Energy that closed over $24
billion of energy and industrial project transactions. Developed independent power projects at Entergy Corporation.
Structured debt financing at GE Capital. Experience with numerous investor-owned utilities as a consultant for Booz
Allen. BS economics from Georgetown University; masters in business from George Washington University; additional
courses work in accounting.
Ruth Beckers (Principal)Closed $16.1 billion worldwide (lived and worked in the US, Germany, Switzerland; presently based in South Africa)
VP Middle East and Africa at ABB, responsible for strategy and project execution; VP at ABB’s advisory group in Zürich
Board Member and owner of an infrastructure project in West Africa
MBA in Banking from the University of St. Gallen (Switzerland); Executive Masters in Corporate Finance from the
University of Applied Sciences in Lucerne (Switzerland)
English, German, French, and Swedish
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 29
Team – cont’d.
Karine Khatcherian (Strategic JV Partner)Closed $7.5 billion worldwide as an investor and financial advisor (lived and worked in Middle East, US, and Europe).
Led or participated in due diligence of transactions with an enterprise value in excess of $32Bn.
CEO, Enervest Capital; Partner, NewWorld Capital; Senior Research Analyst, Sanford Bernstein; Senior Vice
President, GE Capital; Director Project Development, ABB Equity Ventures. Environmental Opportunities Expert
Member of Investment Committee for Closed Loop Fund
Master’s in Industrial Engineering & Management (Ecole Nationale Supérieure de Génie Industriel, Grenoble, France);
Diplôme D’Etudes Approfondies in Financial Management (Ecole Supérieure des Affaires, Grenoble, France)
English, French, German, and Arabic
Jim McCrea (Principal)Led Credit Origination team at the Loan Programs Office of the US Department of Energy, closing $24 billion in
renewable energy projects; closed $28.1 billion in energy project finance transactions
VP Risk management for Philip Morris; MD and SVP at GE Capital, responsible for domestic energy project finance
BA in Government (Hamilton College); MS in Resource Management & Policy (SUNY); MBA Finance (Cornell)
Alok Mathur (President)Closed $21.4 billion worldwide (lived and worked in the US, Switzerland, and India)
30-year career with ABB, Head of ABB Financial Services India (equity, debt underwriting, advisory)
Part of Mgt. team that grew ABB’s advisory business to 140 professionals in 18 countries, closing $5 billion/year
On ABB Mgt. Cmte., approving equity investments worldwide. Recognized among top 200 employees (out of 200,000)
BS Chemical Engineering, (IIT, India); MS Chemical Engineering (SUNY/Buffalo); MBA New York University
English, some German, several Indian languages
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 30
Team – cont’d.
David Stevens (Strategic Partner)Ex-CEO of XL Capital Assurance (“XLCA”) and a member of Municipal Bond Insurance Association's management
team. In these top management roles, David has overseen and approved in excess of $100 billion of underwriting in
financial guarantees (please note that this figure has not been included in the team’s closing experience presented
herein). David also is the CEO of Ascending Markets Financial Guarantee Corp. ("AMF"), a company he is in the
process of launching.
William Streeter (Principal)International infrastructure and municipal finance specialist with over 30 years of experience in the United States,
Canada, Mexico, Chile, India, South Korea, Japan, Indonesia, the Philippines, Taiwan and Australia. Over time, Bill’s
role has ranged from bond ratings, to asset management to advisor. He has unique experience with rating agencies
and municipal bonds as well as a deep knowledge of the Asian market.
Julie Stewart (Principal)Closed $10.8 billion, as an investor and financial advisor, in renewable and fossil fuel energy projects. As Director,
managed acquisition and due diligence efforts (power, electric distribution and transmission companies, water
infrastructure assets and power project development) for investor owned utilities for First Energy (fka GPU, Inc.) and
TXU (fka Enserch Development) in South America, Central Europe, Canada, Southeast Asia and the USA. GE Capital -
non-recourse financing. MBA from Dartmouth College - Amos Tuck of Business Administration; BS Chemical
Engineering - University of California - Davis. English and some Spanish
© 2008 Bank Training & Development Ltd.
© 2017 Global Project Finance Advisory Council. All rights reserved. Slide 31Slide 31
Contact us
Alok Mathur (primary) [email protected]
+1 (203) 227-1160 Direct
+1 (203) 434-8160 Mobile
Paul Barbian [email protected]
+1 (203) 461-1097
Ruth Beckers [email protected]
+27 (60) 9 350 350
Fabio Castellanos [email protected]
Tel: +57 (313) 333 1020
Karine Khatcherian [email protected]
+1 (203) 252-9966
Jim McCrea [email protected]
+1 (203) 247-2791
David Stevens [email protected]
+1 (718) 663-1648
Julie Stewart [email protected]
+1 (908) 693-2522
William Streeter [email protected]
+1 (929) 257-8742