Course 14 of 20 · Emissions and Carbon Desk Academy

Prepayment, Offtake Financing and Working Capital

Stage D, Structured purchase, financing and portfolio specialisation. Level 7 of 10.

Prepaid and financed credit purchase: advance structures, security and recourse, drawdown conditions and the working capital exposure carried until delivery.

127 chapters · 12 modules · every chapter one 8 to 10 minute explainer · builds on: Course 08, Course 11, Course 13

Enrol or enquire See the 127 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

12 modules · 127 chapters

Open any module for its full chapter list, in teaching order.

M0 Why Forward Credit Purchase Arrives Prepaid Ch 1-10
  1. Why the Project Needs Money First
  2. The Asset That Does Not Exist Yet
  3. Three Seats: Financier, Buyer and Project
  4. An Advance Is Not a Deposit
  5. Prepayment, Lending and Equity Side by Side
  6. The Working Vocabulary of a Carbon Advance
  7. What the Purchase Contract Already Settles
  8. What the Offtake Structure Already Fixes
  9. Why Carbon Cannot Be Secured Like a Cargo
  10. From Funding Gap to Final Delivery
M1 The Project's Funding Gap Ch 11-20
  1. The Spend That Comes Before Any Issuance
  2. Why a Commercial Bank Usually Says No
  3. What a Project Can Honestly Pledge
  4. The Special Purpose Vehicle and Why It Exists
  5. Grant, Concessional and Philanthropic Money First
  6. Sizing the Advance the Project Actually Needs
  7. The Advance Too Large to Repay in Units
  8. Who Signs for the Project
  9. Reading a Developer's Cash Forecast
  10. The Developer With Several Projects at Once
M2 Advance Structures Ch 21-31
  1. One Payment Against a Delivery Schedule
  2. Tranched Payments Against Project Milestones
  3. The Discounted Forward Purchase
  4. Fixed Payment Against a Floating Settlement
  5. Repayment in Units Rather Than Cash
  6. The Cash Repayment Option
  7. Delivery-Rate Repayment and the Sweep
  8. A Share of Units Sold Elsewhere
  9. The Committed Line Drawn Only If Needed
  10. Choosing Between an Advance and a Loan
  11. The Structure Chosen Only for Its Accounting
M3 Security: What Can Be Taken, and by Whom Ch 32-43
  1. Taking Security Over Something Not Yet Issued
  2. Pledging the Registry Account
  3. The Joint or Controlled Holding Account
  4. Assignment of the Offtake Receivable
  5. A Charge Over Plant and Equipment
  6. The Share Pledge Over the Project Vehicle
  7. Step-In and Substitution Rights
  8. Assignment of Project Documents and Registration
  9. Escrow of Issuance Proceeds
  10. Negative Pledge and the Second Buyer
  11. Perfection Where the Project Sits
  12. A Package That Looks Strong and Realises Nothing
M4 Recourse and the Obligor Ch 44-54
  1. Which Way Recourse Actually Runs
  2. Full Recourse to the Developer Group
  3. Limited Recourse Confined to the Vehicle
  4. Non-Recourse in Name and the Carve-Outs Left
  5. The Parent Guarantee Behind a Thin Vehicle
  6. Sponsor Support Short of a Guarantee
  7. Replacement Delivery as the First Remedy
  8. Cash Repayment as the Fallback
  9. Recourse Against a Counterparty With Nothing Else
  10. Cross-Default Into the Sponsor's Other Projects
  11. Drawing the Obligor Map Before Signing
M5 Drawdown Conditions and the Milestone Ladder Ch 55-66
  1. Conditions Precedent to the First Payment
  2. Validation Complete as a Funding Gate
  3. Registration and the Condition Most Often Missed
  4. First Verification and the Next Tranche
  5. Issuance Into the Controlled Account
  6. Host Country Authorisation as a Gate
  7. Who Certifies That a Condition Is Met
  8. The Condition the Project Cannot Control
  9. Waiver, Deferral and the Precedent It Sets
  10. Conditions Repeated at Every Drawdown
  11. The Drawdown Notice and Its Mechanics
  12. A Milestone Ladder Worked Through
M6 Documenting a Financed Purchase Ch 67-76
  1. One Agreement or Two
  2. The Prepayment Schedule Inside an Offtake
  3. The Standalone Facility and Its Interaction
  4. Acknowledgements From Third Parties
  5. Intercreditor Terms When Two Funders Arrive
  6. Events of Default Written for a Project
  7. Representations About Units Not Yet Created
  8. Conditions Subsequent and the Post-Closing List
  9. Transferring the Funder's Position
  10. Governing Law and the Place of Enforcement
M7 Pricing the Advance Ch 77-86
  1. What an Advance Earns and How It Is Expressed
  2. Separating the Unit Price From the Funding Cost
  3. Time to Issuance as the Main Driver
  4. Pricing the Chance of No Issuance at All
  5. Fees, Commitment Charges and Undrawn Money
  6. Why Two Funders Quote Differently
  7. An Illustrative Advance Priced Three Ways
  8. The Buyer's Effective Cost Per Unit
  9. An Advance Against Buying Later
  10. When the Price Cannot Compensate
M8 The Working Capital Carried Until Delivery Ch 87-97
  1. Exposure Begins the Moment Money Leaves
  2. Measuring the Unrecovered Balance
  3. The Amortisation Profile as Units Arrive
  4. Mapping Exposure Against the Delivery Calendar
  5. Where the Advance Sits in the Accounts
  6. Provisioning Against a Slipping Project
  7. The Balance That Stops Amortising
  8. Funding the Advance Itself
  9. Recording the Position in an ETRM
  10. Reporting the Balance to a Credit Committee
  11. An Illustrative Exposure Profile
M9 Monitoring a Financed Project Ch 98-107
  1. What Information Rights Are Actually Worth
  2. The Reporting Calendar to Demand
  3. Monitoring Period Slippage as an Early Signal
  4. A Change of Verifier and What It Means
  5. Site Visits and Independent Technical Review
  6. Watching the Project's Other Buyers
  7. The Developer Who Stops Answering
  8. Re-Forecasting Delivery Mid-Life
  9. Deciding Whether to Fund the Next Tranche
  10. The File a Successor Funder Will Read
M10 When a Financed Project Fails Ch 108-118
  1. Telling Late Apart From Gone
  2. The Standstill Before Any Enforcement
  3. Restructuring the Delivery Schedule
  4. Converting Unrecovered Money Into Debt
  5. Accepting Units From Somewhere Else
  6. Realising Control Over the Account
  7. Taking the Project Over
  8. Selling the Position to a Specialist
  9. Insolvency of the Vehicle and the Queue
  10. Writing the Loss Down Honestly
  11. An Illustrative Recovery Worked Through
M11 A Financed Purchase End to End Ch 119-127
  1. The Situation and the Three Parties
  2. Structuring the Advance
  3. Building the Security and Recourse Package
  4. Drawdown to First Delivery
  5. The Slip and the Decision
  6. Settling the Remaining Exposure
  7. The Credit Paper for a Prepaid Purchase
  8. Where These Threads Continue
  9. What an Advance Cannot Buy

The brochure gives each of these 127 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 14 of twenty

It stands alone, and it is also the entry point to the Emissions and Carbon Desk Academy pathway.

Enrol or enquire See the whole pathway