Project Finance Careers & Jobs
Project finance jobs refer to the jobs in the area of controlling and managing infrastructure and industrial projects from the financial perspective in the long term which includes making financial decisions regarding investment like raising funds, doing contracts with vendors and negotiations, generating finance for the project and analyzing projects viability and earnings.
Project Finance can be broadly defined as financing of long-term projects such as infrastructure, power & plant, and other industrial projects. Today the role of finance professionals is mounting beyond the traditional accounting and reporting functions, they are taking the role of leadership for promoting efficiency and improving the performance of an organization. And such these jobs stand out in the fields of finance by advising, analyzing and financing the various industrial projects. The jobs range from an analyst to the director of the project but all these jobs involve the long-term financingLong-term FinancingLong term financing means financing by loan or borrowing for a term of more than one year by way of issuing equity shares, by the form of debt financing, by long term loans, leases or bonds, done for usually extensive projects financing and expansion of the company. of infrastructure projects or industrial projects.
Project Finance will be interesting to those who enjoy traveling, advising clients for the financial decisions, analyzing and projecting the financial statements. Through this article, I aim to provide you the brief details about the project finance jobs. And how does it differ from the various other jobs of finance?
In this article I am going to cover the following points on Project Finance Careers:
p.s. Please do have a look at this Project Finance Course if you want to learn it professionally.
Project Finance Jobs Streams
There are two main streams in project finance jobs i.e. advisory and lending. Project Finance Group basically advises clients and/or lends funds for the debt used in huge investments.
In this kind of job, the professionals advise the clients for the funds used in the huge investment. Below are the activities conducted by the Project Finance Advisor:
- If you are being appointed in a Project Finance Group as an Advisor so your main task will be to handle the clients.
- If you will see the basic element for every client is to gather the funding/financial goals for their project, so as an advisor you will be guiding the clients on how to make an arrangement for collecting the funds by providing them debt funding sources and prioritizing the important element.
- As for clients, the ideal situation is to get maximized debt period, maximized debt load, quick financial close, and low debt pricing. So as a Project Finance Advisor your duty will be to make intensive modelling of the client’s project, carrying out the due diligence of projects including pre-bid advisory, estimating the cash flows of the project, collecting marketing materials such as information memorandum and preparing structure of the funding to meet the specific requirement of the project.
- After preparing and finalizing the deal structure, as an advisor, you will be reaching out to the banking markets or financial institutionsFinancial InstitutionsFinancial institutions refer to those organizations which provide business services and products related to financial or monetary transactions to their clients. Some of these are banks, NBFCs, investment companies, brokerage firms, insurance companies and trust corporations. for raising the required finance for the client’s project.
Debt Syndication refers to the selling of loans to other banks or financial institutions. Below mentioned are the activities of a debt syndication job in project finance:
- As the project financing is basically required for the large size of the project, so the multiple banks find it ideal to fund together for a single project.
- If you are working under the project syndication or debt syndication team of the main bank, you will be playing the role of an intermediate between the client and with the other financial institutions.
- As an intermediate, you will be finalizing the structure and get loan sanctions from all the leading agencies who are involved in the transactions.
- Under the debt syndication team, you will be also required to interact with several banking and financial institutions and negotiate the terms of loan sanction to best suit the client requirements.
Project Finance Job Roles
There are numerous jobs that generally range from an analyst to a director position of project and infrastructure finance. These jobs involve infrastructure financing and various industrial projects financing over a long period of time. Project finance jobs want that professional in this field who plans long term cash flow rather than just analyzing and balancing the income statementIncome StatementThe income statement is one of the company's financial reports that summarizes all of the company's revenues and expenses over time in order to determine the company's profit or loss and measure its business activity over time based on user requirements. and balance sheets of those corporates which are financing the projects. The following are the description of different positions in Project Finance:
Directors are the ones who visions the failure or success of the project before preparing the financial structureFinancial StructureThe financial structure refers to the sources of capital and the proportion of financing that comes from short term liabilities, short term debt, long term debt, and equity to fund the company's long term and short term working capital requirements. of the project. In order to become a director of a Project Finance Company the following skills you need to possess:
- You should have an experience of 10 – 12 years working with financial statementsFinancial StatementsFinancial statements are written reports prepared by a company's management to present the company's financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels., financial analysis and debt flow
- You need to have an analytical mind to understand the varied range of factors that may influence the success of a project.
- You should also have experience in marketing research and sales in order to understand the factors that can affect the project’s earnings.
- You will require to possess a sharpened leadership skill in order to lead a team of project finance.
Project Finance Managers jobs are the one who is capable enough to lead a team. To work as a manager in the project finance team, you will require to possess the following skills:
- You need to have an experience of 3-5 years working as an analyst, making an intensive modeling structure of a company.
- You will require to undertake all the necessary activities i.e. collecting the information, preparing the projection model, finalizing the structure, etc. for meeting the funding requirements financial or funding requirements of the clients.
- You will require to coordinate with banks, financial institutions, private equity funds, rating agencies and other participants in the financial communal in order to ensure the timely accessibility of finance for the project. And also coordinate with the finance providers on due diligence, term sheet negotiations, and documentation.
- You will work with a project development team to identify, analyze and execute the most optimum financing solutions for projects.
This job involves assisting seniors and preparing the reports. If you are planning to get this job as an analyst, you require to possess:
- You need to have an MBA degree in Finance from the top management institutions.
- Your job will be to assist the directors and setting up various contracts.
- As an analyst, you should know to make digital reports on projected earning, risk and cash flow.
- You need to possess management skills to manage teams, client meetings, and contract negotiations.
- You are required to possess the skills of effective communication, resource management, and negotiation skills as the responsibility level, scope, complexity will differ according to the nature of the project.
- Between three to five years of professional experience in infrastructure project finance learned primarily within a project finance bank or a corporate house focused on project development/financing.
- Should know how to screen new projects, aware of defining project description & scope and conducting feasibility studies to determine the financial viability of new ventures projecting cash flow & growth opportunities
- Should know to Prepare, Monitor and ensure cash flows, fund flows, Profitability Statements, IRRs, Payback periodsPayback PeriodsThe payback period refers to the time that a project or investment takes to compensate for its total initial cost. In other words, it is the duration an investment or project requires to attain the break-even point., DSCRs, projected profitability, and other financial parameters/reports to analyze inflow/outflow of funds and profits/surplus resulting thereof.
- Strong knowledge of financial modelingFinancial ModelingFinancial modeling refers to the use of excel-based models to reflect a company's projected financial performance. Such models represent the financial situation by taking into account risks and future assumptions, which are critical for making significant decisions in the future, such as raising capital or valuing a business, and interpreting their impact., capable of building from scratch sophisticated “project finance” financial models.
- Coordination with Banks, financial institutions and consultants to arrange syndication of and raise funds from various financial institutions / Banks/lease finance companies
- Knowledge of project financeProject FinanceProject Finance is long-term debt finance offered for large infrastructure projects depending upon their projected cash flows. Moreover, an investor has to form a Special Purpose Vehicle (SPV) to acquire the same. documentation and experience of handling financial closing work either as project developer or a lender.
- Knows how to compile and prepare cost and performance reports as per cost accounting records rule (CARR), cost-benefit analysisCost-benefit AnalysisCost-benefit analysis is the technique used by the companies to arrive at a critical decision after working out the potential returns of a particular action and considering its overall costs. Some of these models include Net Present Value, Benefit-Cost Ratio etc., and critical analysis of cost reports; recommending necessary corrective actions; and also conducting a financial analysis of similar companies and/or Projects for benchmarking Ratios and performance tracking.
- Should be a Chartered Accountant (CA) / Certified Public Accountant (CPA) / MBA (Finance) and needs to have knowledge on the areas of project proposals, project finance management all the financial accountabilities related Multiple Projects
Responsibilities in Project Finance Jobs
- To make inclusive financial models for several projects to deliver cash flow forecast, scenario analysis, risk assessment and return analysis.
- Individuals have to work closely with the project development team to identify, analyze and execute the most optimum financing solution for projects which include debt & equity.
- Individuals have to coordinate the drawdown/repayment formalities for debt facilities and to monitor compliance with financing conditions and obligations.
- Even individuals have to coordinate with finance providers on due diligence, term sheetTerm SheetThe term sheet is usually a non-binding agreement that contains all the essential points related to the investment like capitalization and valuation, stake to be acquired, conversion rights, asset sale. negotiations, and documentation.
- Coordinate with banks, financial institutions and consultants to arrange syndication of and raise funds from various financial institutions/banks/lease finance companies.
- To evaluate capital investmentEvaluate Capital InvestmentCapital Investment refers to any investments made into the business with the objective of enhancing the operations. It could be long term acquisition by the business such as real estates, machinery, industries, etc. proposals and calculation of project/dividend IRR’s, DSCR’s, and Sensitivity Analysis, etc.
- To compile and prepare cost and performance reports as per cost accountingCost AccountingCost accounting is a defined stream of managerial accounting used for ascertaining the overall cost of production. It measures, records and analyzes both fixed and variable costs for this purpose. records rule (CARR), cost-benefit analysis and critical analysis of cost reports; recommending necessary corrective actions.
- Investigate into historical dealings to categorize pricing, debt levels, trends, and greatest practice. It also has to conduct a financial analysisFinancial AnalysisFinancial analysis is an analysis of finance-related projects/activities, company's financial statements (balance sheet, income statement, and notes to accounts) or financial ratios to evaluate the company's results, performance, and trends, which is useful for making significant decisions such as investment, project planning and financing activities. of similar companies and/or projects for benchmarking ratios and performance tracking.
Salaries of Project Finance Professionals
Project Finance Jobs are still in high demand, the salaries of project finance professionals differ as per the position, role and years of experience but still, these are being highly paid careers compared to other areas in finance. The following table will give you the details of the salaries of project finance professionals:
|Project Finance Job Role / Experience||Basic Salary Range ($)||Bonus (%’ age)|
|Analyst 1-3 years||40,000 – 65,000||30-70%|
|Managers 3-5 years||60,000 – 90,000||30-100%|
|Vice President||80,000 – 130,000||50-120%|
|Director||120,000 – 220,000||50-200%|
|Managing Director||150,000 – 350,000||100-300%|
The survey found that at large investment banks some senior project finance professionals earn basic salaries of $200,000. Many people had attained bonuses getting seven figures. And also in energy sector project finance directors earn a median salary of $100,000, with a bonus of typically 100%. Even at the assistant director level, salaries are $70,000 and an average bonus of 80%. In the graph below you can see the range of salaries offered to the Project Finance Manager Job.
Companies Offering Project Finance Jobs
There are many companies that offer these jobs as this field is still in great demand today. Various infrastructure companies, energy, and power companies, large investment banks, steel companies, oil & gas companies, etc. who require a comparatively huge amount of funds for their projects compared to other sectors or companies are looking forward to projecting finance professionals.
Following is the list of companies who offer project finance jobs and they are:
- China State Construction & Engineering
- Chevron Corporation
- Saudi Aramco
- Royal Dutch Shell
- Matson Navigation Company
- Crowley Maritime Corporation
- Royal Bam Group
- Jacobs Engineering
- Goldman Sachs
- Larsen & Toubro
- Marathon Petroleum Corporation
- Reliance Industries Ltd.
- Exelon Corporation
- Anglo American Platinum
This has been a guide to Project Finance Careers and Jobs. Here we discuss the project finance streams of advisory as well as debt syndication. Here we also discuss project finance roles like Director, Manager, and Analyst. Here we also discuss their salaries and the kind of companies that offer such jobs. You may also have a look at these articles below to learn more about Project Finance –