QUESTION $1$

$($A$)$ Define the term 'Project'

$($B$)$ Outline the main characteristics of a project

$($C$)$ Explain the advantages and disadvantages of project finance

$($D$)$ Discuss the sectors where project financing is used

QUESTION $2$

$($a$)$ What are syndicate loans and why are they extensively used in financing projects? $(4$

marks$)$

$($b$)$Describe the $4$ different banks involved in a syndicate loan and outline their main

functions? $(8$ marks$)$

$($c$)$ In loan syndication, there is a bank arranger and a bank advisor. Outline the advisory

and arranging services these banks perform

$($d$)$ Explain the role of multilateral and export credit agencies in project financing $(5$

marks$)$

QUESTION $3$

$($a$)$ What are subordinated loans?

$($b$)$ Explain the main reasons why sponsors prefer subordinated loans to equity $(6$ marks$)$

$($c$)$ Describe how leasing is used to finance projects and outline its main advantages $(6$

marks$)$

$($d$)$List and explain the two main groups of sources of debt and equity in project finance

$(13$ marks$)$