Unit convenor and teaching staff |
Unit convenor and teaching staff
Lecturer
Cosmas Kapsanis
Contact via Email
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Credit points |
Credit points
2
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Prerequisites |
Prerequisites
(Admission to MAppFin or MAppFin(Adv) or GradDipAppFin) and ECFS866
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
Project Finance typically involves an independent legal entity operating as a vehicle for owning and funding large scale projects. Capital sources for the entity will be a combination of equity from sponsors and debt from the bank or capital markets. The application of this financing approach is most commonly seen in the fields of infrastructure (both social and economic) and natural resource financing. Examples include the financing of toll roads, power stations, mines, pipelines, telecommunications networks, hospitals and public buildings such as courts and prisons.
This course considers the financial techniques applied to solving such funding requirements in both the domestic and international context, and the business rationale for project finance. A comprehensive risk system is introduced for the identification and systematic allocation of risk in the various approaches to structuring a project financing. Funding, political-risk structuring, and recent capital-market developments are highlighted in class and through practical case studies. A heavy emphasis is placed on the international character of the project finance industry.
The skills gained in this course will be relevant for corporate executives, bankers, lawyers, consultants and government officials who may be involved in large scale infrastructure and resource developments.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
To pass this unit the student needs to (1) Achieve an aggregate mark of 50 or more, and; (2) Pass the Final Exam.
Name | Weighting | Hurdle | Due |
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Pre-course Assignment | 15% | No | 10 Oct before class starts |
Case Prep & ClassParticipation | 15% | No | Ongoing |
Major Assignment | 20% | No | Refer to iLearn |
Final Exam | 50% | Yes | Refer to Timetable |
Due: 10 Oct before class starts
Weighting: 15%
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Thursday 10th October before class commences.
Submission Method: In class.
Extension Requests:
Pre-unit Assignment Task Description
Write a paper with a word limit of 2,000 addressing the following:
We are living in a period of limited economic growth and less than full employment. Many commentators propose investment in infrastructure as a tool available to government to help address these challenges, due to the positive multiplier effect presumed from investing in infrastructure.
Australia has long considered the development of a high-speed rail link down the east coast. In the 2019-20 Budget, the Australian Government established a National Faster Rail Agency to produce a number of business cases for higher speed rail between capital cities and regional centres. The Government allocated $40 million to assess five fast rail corridors.
As of now, funding estimates for such a project are very varied but usually top $100bn.
What financial, political and operational challenges does Australia face in building a high-speed rail service?
Write a paper of no more than 2,000 words highlighting the business issues and risks that a proponent of such a project would need to address. You may source data online from reputable publications and your paper should take into account the specific scale of this prospective investment.
This paper is required by the beginning of the first evening session on Thursday 10th October. Submissions should be made by hard copy handed to me at the commencement of the class.
This paper is worth 15% of your course grade.
Due: Ongoing
Weighting: 15%
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Ongoing.
Submission Method: In class.
Extension Requests:
Other Information:
Classroom sessions have a heavy component of case work. In order to participate effectively in class, it is critical that cases are prepared properly.
Students should allow at least 3 hours per case of reading and analysis time and come to class prepared to be called on at random to present and defend answers to the case questions. Note: many questions require numerical analysis which is impossible to complete at short notice or ‘on-the-fly’.
The timetabling of the classroom case study sessions is given below in the Unit Schedule by session.
Due: Refer to iLearn
Weighting: 20%
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Refer to iLearn.
Submission Method: Via iLearn.
Extension Requests:
Other Information:
Due: Refer to Timetable
Weighting: 50%
This is a hurdle assessment task (see assessment policy for more information on hurdle assessment tasks)
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Refer to Timetable.
Submission Method: As per MAFC Program Rules at https://mafcstudents.mq.edu.au/.
Duration: 2 hours plus 10 minutes reading time.
Examination Conditions:
Extension Requests:
Other Information:
CLASSES
Face-to-Face Teaching: Generally 20 hours.
Timetable: Detailed timetable for classes are available at https://www.mq.edu.au/about/about-the-university/faculties-and-departments/business/study-with-us/macquarie-applied-finance-centre/timetables.
Consultation Times: Students who wish to contact any of the teaching staff may do so through individual consultation with the lecturer by email in the first instance, if necessary.
REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS
Text: Nil.
Additional Readings:
Lecture Slides: Available via iLearn after the relevant class.
Pre-unit Materials:
Useful References:
Calculators: Any ordinary calculator will be sufficient for classwork and the Final Exam.
Assumed Knowledge:
Assumed Access: Access to a computer with word processing and spreadsheet capability is assumed, as is general student computer literacy.
Unit iLearn Site:
Important:
SESSION 1
Pre-Course Required Reading:
Topics:
SESSION 2
Topics:
Case: Nava Bharat: Energy Solutions for India
Read and analyse the case and consider whether the coal-fired thermal power plants offer a good investment vehicle for the lenders?
In doing so:
SESSION 3
Topics:
Case: Absheron Project: BP’s Production Sharing Agreement in Azerbaijan
Questions for this case are included in the case study
SESSION 4
Topics:
SESSION 5
Topics:
Case: BrisConnections (A) – The Vested Interests of an Australian Toll Road
Questions for BrisConnections (A) are included in the case.
SESSION 6
Topics:
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Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central).
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Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au
Students should also consult the MAFC Program Rules found at https://mafcstudents.mq.edu.au/.
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
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Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.
This graduate capability is supported by:
Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.
This graduate capability is supported by:
Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.
This graduate capability is supported by:
This Unit Guide may be subject to change. Students will be advised, via an "Announcement" on iLearn, if the Unit Guide is changed.
The latest version is available at https://unitguides.mq.edu.au/.
Students should read the Unit Guide carefully at the start of term. It contains important information about the unit. If anything is unclear, please consult one of the unit lecturers.