Construction Contract Financing By Banks
INTRODUCTION
For business entities undertaking projects or specific contracts, the ability to win either a single large project or several smaller contracts simultaneously, can provide the much needed boost towards business growth, profitability and financial resilience. However, having adequate funds as well as guarantees from banks and other financial institutions is invariably a significant factor in ensuring the successful fulfillment and completion of these projects or contracts. By grasping the potential pitfalls and practical risks inherent in construction project or contract financing, bankers as well as other finance and business professionals will be more adept making sound business credit decisions. Further, by learning how banks generally evaluate project or contract financing applications, participants would be able to effectively negotiate with Borrowers towards a win-win outcome.
LEARNING OUTCOME
Understand and have worked through examples of the following:
- Know what Project Financing or Contract Financing means in general.
- Learn the different stages of the Project Financing or Contract Financing process in Banks.
- Analyse the various elements including risk factors that are a part of the Credit Evaluation and Credit Structuring process.
- Learn how to help shape the proper structuring of banking.
- Know what are the relevant documents that are typically requested by banks in relation to Project or Contract Financing.
- Learn how to proactively monitor and deal with the financial consequences of unanticipated events or changes.
TRAINER’S PROFILE
Mr. P. Manoharan is an experienced senior banker with over 30 years of proven leadership and management experience. He was previously the Executive Vice President and Advisor to Commercial Banking in a leading regional universal banking group. Over the years, he has had responsibility for leading the high performance of people, projects and the banking organization in a number of key areas, successfully navigating through 4 large scale mergers and 3 economic recessions. This includes portfolios ranging from Corporate Banking, Retail Banking, Branch Banking, Credit Risk Management, Compliance & Controls, Sales & Business Development, Corporate Debt Restructuring, Asset Quality Management, Regional Business Management as well as Commercial Banking roles covering consumers, SMEs to larger corporations and multinationals in various economic sectors. During the aftermath of the 1997/98 Asian Financial Crisis, he was called upon to serve as one of only three senior banking industry representatives in the Corporate Debt Restructuring Steering Committee from 1999 to 2001,under the auspices of Bank Negara Malaysia (Central Bank of Malaysia).