: Be prepared to interpret financial sustainability through cover ratios. Understand the Stakeholders
Answer: d) All of the above
If a question asks about contractual mitigation of risk, look closely at the underlying agreements (Off-take agreements, EPC contracts, and O&M contracts).
Total Debt Service = Principal + Interest = $7M + $3M = $10 million. : Be prepared to interpret financial sustainability through
An agreement between a government and a private company to finance, build, and operate a toll road is an example of:
A DSCR below 1.0 means the project cannot cover its debt. Lenders usually require a DSCR buffer (e.g., 1.20x to 1.40x) depending on project risk. 2. Loan Life Coverage Ratio (LLCR)
In infrastructure finance, what is the key difference between "funding" and "financing"? An agreement between a government and a private
Are you struggling with a (like risk allocation) or a mathematical calculation (like DSCR/WACC)?
Explanation: ESG considerations are becoming increasingly important for investors when evaluating infrastructure investments. Investors are looking for infrastructure investments that not only provide financial returns but also have positive social and environmental impacts.
This assesses the project's ability to service debt over the entire remaining life of the loan. Loan Life Coverage Ratio (LLCR) In infrastructure finance,
A) Market risk B) Credit risk C) Operational risk D) Political risk
Financing and Investing in Infrastructure by Università Bocconi is a rigorous, practical course that bridges theory and real‑world application. Mastering its content requires understanding project finance fundamentals—SPV structures, syndication, risk analysis, capital budgeting, cover ratios, creditor protection, and financial sustainability.
Pay close attention to wording. Corporate balance sheets are not tied up in pure project finance; if a question implies the parent company is fully liable for SPV losses, the answer is almost always false.