Does anyone know where I can read some info on a primer to do with financial modelling, forecasting, government policy etc regarding the energy industry?
Thing is: it depends on the types of projects and where they are.
Financing wind parks in Europe has little to do with say, financing a shale gaz project in Utah.
In my experience, the general idea is that you are dealing with:
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cash flow based financing (project cash flows determining the debt structure as opposed to say, a leverage ratio in the case of corporate financing)
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some kind of recourse in the construction phase, and non-recourse after commissioning (only the SPV is liable, not the developers, construction companies or sponsors)
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floating rate facilities in the construction phase that are refinanced by fixed rate facilities (or floating + swap / cap) after commissioning
It is a very specialised field where you will have to know alot about the technical / legal side of what you are doing (enough to put off the “pure” finance types), expect a huge amount of red tape.
Also, as I mentioned in your other thread, the documentation-side is pretty heavy. Since you are doing non-recourse, the banks structure their projects as if they had to foreclose and sell the project as a going concern. This means that every damn thing is pledged / used as a guarantee; from what I have seen (again, this will depend on the type of project/jurisdiction/etc.):
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SPV share pledge
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security on the machines/physical equipment
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pledge of the rights out of every project contract you can think of
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pledge of insurance proceeds
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pledge of future VAT refunds
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mortgage on the rights coming out of the land leases
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security on the offtaker contract / Feed in Tarif
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…
Not sure if that helps, but without any info on the specific field, it’s rather vague.
Thanks for the info. Interview in the end was just with a recruiter, so will see where it goes from there.
Yeh hard to be specific as well, as they operate in all fields of energy, from geothermal to coal power etc.
Think it will be a tough gig to get, since I havent got any energy experience, getting the feeling they will have little itnerest.