Who should attend the course?
- Practitioners in the financial services industry looking to expand their knowledge and understanding of ESG and renewable energy modeling
- Experienced analyst looking to transition into the growing sector of renewable energy
- Graduates preparing for interviews in the project finance and renewable energy sector
- Students at business schools looking for a career in the green industries
Day 1: ESG and responsible investing
In this session the framework for ESG and responsible investing will be identified and evaluated. Participants will learn how to incorporate ESG and responsible investing practices from both the investor and corporate boardroom perspectives. The programme will focus on the practical application of ESG investing including ESG research and analysis along with the impact on equities, fixed income and alternative asset classes. The coverage will also include an assessment of ESG portfolio strategies and products.
- Introduction to ESG and Responsible Investing
- An historical overview of socially responsible investing
- Social purpose, sustainability and purposeful capitalism
- Differentiating between socially focused investing, governance focused investing and environment focused investing
- The size and growth of the ESG and SRI marketplace
- Global ESG assets by type of exposure
- Stimulants and catalysts behind the growth of ESG and SRI investing
- Why the ESG market is poised for further growth
- ESG megatrends and what they mean for the future of investing
- ESG Research and Analysis
- Incorporating ESG into traditional financial analysis
- Making adjustments to financial model assumptions
- Adjustments to valuation model inputs
- ESG factors and the impact on company financial performance
- ESG factors and the impact on security valuation
- Analysing the impacts on equities, fixed income and alternative asset classes
- ESG Portfolio Strategies
- What are the dominant ESG portfolio strategies?
- What differentiates the various strategies from each other?
- Negative and exclusionary screening
- Positive best-in-class screening
- ESG integration
- Impact investing
- ESG engagement and activism
- ESG Products
- What is sustainable finance?
- Differentiating between green finance and sustainable finance
- Overview of the features, benefits and applications of the following products:
- Green bonds
- Climate bonds
- Sustainable bonds
- Sustainable loans
- Social bonds
Day 2: Project finance modeling
In this session, project finance and project finance modeling are discussed in depth using a full project finance model which analyses a project in depth. The construction phase, operating phase and financing are discussed in detail and include complex issues such as dealing with real and nominal forecasting, maintenance capital expenditure and deferred tax. This prepares participants to be able to effectively and efficiently build any complex project finance model. Debt considerations, credit metrics, project valuation and investor returns are also modelled, discussed and examined.
- Project finance transaction considerations and structure
- Core mechanics of project finance models
- Construction phase
- Operating phase
- Financing with multiple debt tranches
- Interest during construction
- Financial statement analysis
- Three statement model
- Cash sweep and cash flow available for debt service
- Real and nominal cash flows
- Full capital expenditure analysis
- Deferred tax considerations
- Credit analysis
- An overview of project finance terms
- Covenants in project finance
- Market risk and contract risk in project finance
- Investor considerations
- Returns analysis
- Project finance valuation
- Use of project finance model
- Risk and analytical failures
- Sensitivity analysis
- Model error checking and best practice
What is a Virtual Classroom?
Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. For an example of the technical requirements of for our Virtual Classrooms click here.
We recommend delegates have a solid understanding of financial statement analysis (balance sheet, income statement and cash flow) and financial modeling skills.