Course 09 of 20 · Power Origination and PPA Desk Academy

Credit Support, Guarantees & Security

Stage B, Structure, shape and risk allocation. Level 5 of 10.

Sizing and documenting collateral, parent guarantees and security packages for a long-dated power contract.

120 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 01, Course 02, Course 04

Enrol or enquire See the 120 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

11 modules · 120 chapters

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

M0 A Fifteen-Year Promise and Who Can Keep It Ch 1-10
  1. The Year Nine Question Nobody Asks at Signature
  2. Credit Support Changes the Payer, Not the Bargain
  3. Four Seats Around One Credit Support Negotiation
  4. Both Sides Are at Risk, at Different Moments
  5. Construction Cover and Operating Cover Are Different Animals
  6. Why a Project Company Has Almost Nothing to Offer
  7. The Words That Decide These Arguments
  8. What the Mandate and the Buyer's Sanction Already Settled
  9. Where This Stops and Another Course Begins
  10. The Route Through the Modules
M1 Who Is Actually Promising What Ch 11-20
  1. Reading a Power Purchase Agreement for Its Obligor
  2. The Corporate Group Standing Behind a Named Purchaser
  3. A Procurement Vehicle With No Balance Sheet of Its Own
  4. The Generating Side's Own Group and Its Sponsors
  5. Change of Control and a Counterparty Nobody Chose
  6. Assignment, Novation and Who the Seller Ends Up Facing
  7. Governing Law and Whether a Promise Can Be Collected
  8. Reading a Rating, and Reading Accounts Where There Is None
  9. A Purchaser Whose Own Business Turns on Electricity Cost
  10. Correlated Failure: Obligor and Guarantor in One Market
M2 Sizing the Exposure a Long Contract Creates Ch 21-32
  1. Exposure Is a Number With a Sign and a Date
  2. Delivered Output Invoiced and Not Yet Paid
  3. Marking a Fixed Price Against a Moving Forward Curve
  4. Which Party the Mark Favours, and Why It Switches
  5. Years Beyond Any Observable Price
  6. Potential Future Movement, Part One: What the Measure Attempts
  7. Potential Future Movement, Part Two: Building the Add-On
  8. Exposure Carried by Certificates Rather Than Energy
  9. Collapsing Several Claims Into One Figure
  10. When in the Term the Peak Actually Falls
  11. What This Measurement Deliberately Leaves Out
  12. A Worked Exposure Profile Across Twelve Years
M3 Cover the Generating Side Provides Ch 33-43
  1. Bid Security in a Competitive Procurement Round
  2. Development Security Before Financial Close
  3. Milestone Security Against a Commissioning Date
  4. Delay Damages and the Instrument Behind Them
  5. Cover Sized Against Promised Annual Output
  6. Backing an Availability Undertaking
  7. Returning Construction Cover at Commercial Operation
  8. Cover From a Company Whose Cash Is Already Pledged
  9. Sponsor Undertakings That Stop Short of a Guarantee
  10. What Posting Cover Costs Inside a Project Budget
  11. A Worked Construction Security Schedule
M4 Cover the Corporate Purchaser Provides Ch 44-54
  1. Payment Cover Sized to the Billing Cycle
  2. The Treasurer's Objection to a Twelve-Year Instrument
  3. Bank Facility Capacity an Electricity Contract Consumes
  4. Covenant and Disclosure Consequences of Granting Support
  5. Paying a Higher Price Instead of Posting Cover
  6. Deposits and Advance Payments From an Industrial Buyer
  7. An Unrated Private Company as Purchaser
  8. A University, Hospital or Public Body as Purchaser
  9. Several Organisations Behind One Contract
  10. Cover That Reduces as the Term Runs Off
  11. A Worked Purchaser Cover Schedule Across the Term
M5 The Instruments Compared Ch 55-66
  1. Four Questions That Separate Every Instrument
  2. The Undertaking a Corporate Group Will Actually Sign
  3. Guarantee Against Indemnity, and What Changes
  4. A Standby Letter of Credit Behind Monthly Invoices
  5. Demand Guarantees and the Rules Behind Them
  6. Surety Bonds and Why an Insurer Prices Them Differently
  7. Cash Held in a Reserve Account
  8. Escrow and the Independent Account Holder
  9. Insuring a Long Offtake Receivable
  10. Letters of Comfort and What They Are Worth
  11. The Issuing Institution's Own Standing
  12. Choosing an Instrument for One Named Counterparty
M6 Triggers, Deterioration and Cure Ch 67-76
  1. What a Credit Trigger Is Doing in the Contract
  2. Rating Scales and Reading the Current Terms
  3. Writing a Trigger for a Counterparty Nobody Rates
  4. Financial Tests and the Dates They Are Measured On
  5. The Step-Up: More Cover When Standing Weakens
  6. Cure Periods, Notices and the Clock
  7. Failing to Cure, Short of Termination
  8. Release Triggers and Cover Coming Back
  9. Two-Way Triggers and the Symmetry Both Sides Accept
  10. Calling for More Security Before It Is Due
M7 Security Over the Project and Its Cash Ch 77-87
  1. Which Direction Security Runs in a Project Sale
  2. What a Wind or Solar Plant Offers as Security
  3. A Share Pledge Over the Generating Company
  4. Assigning the Sale Agreement Itself
  5. Charges Over the Project's Bank Accounts
  6. The Acknowledgement a Corporate Buyer Is Asked to Sign
  7. Ranking Behind the Project's Financiers
  8. Perfection and Registration Differ by Jurisdiction
  9. Certificates as Security and the Transfer That Defeats It
  10. A Negative Undertaking Instead of a Charge
  11. When No Further Charge Can Be Granted
M8 Documenting the Package Ch 88-98
  1. Where Credit Support Lives in the Agreement
  2. The Credit Support Schedule as a Standalone Table
  3. Annexing the Form of Parent Undertaking
  4. Annexing the Form of Letter of Credit
  5. Eligibility Criteria for an Acceptable Provider
  6. Permitted Substitution of One Instrument for Another
  7. Expiry, Evergreen Wording and Automatic Extension
  8. Drawing Mechanics and the Certificate Required
  9. Set-Off, Netting and Applying What Is Drawn
  10. Conditions to Release and the Final Return
  11. Reviewing a Package a Year After Signature
M9 Structures That Change the Credit Question Ch 99-108
  1. A Financially Settled Contract With No Delivery
  2. A Sleeved Arrangement and the Party in the Middle
  3. On-Site Generation: Default Is Also an Access Problem
  4. An Aggregator Standing Between Many Buyers
  5. Joint, Several and the Share Each Buyer Carries
  6. A Contract Transferred to a New Holder
  7. Refinancing and the Security That Must Come Out
  8. Replacing a Purchaser That Has Failed
  9. Cover When Attributes Are Sold to a Different Party
  10. When the Purchaser Is Also a Market Participant
M10 A Worked Package and What It Cannot Do Ch 109-120
  1. The Deal We Will Secure
  2. The Obligor Analysis for This Case
  3. The Exposure Profile for This Case
  4. Sizing Construction Cover for This Case
  5. Sizing Payment Cover for This Case
  6. The Instruments Chosen and the Reasoning
  7. The Triggers and Cure Terms Agreed
  8. The Security Granted and Who Holds It
  9. The Same Case With a Downgrade in Year Four
  10. The Same Case With the Project Commissioned Late
  11. What Credit Support Cannot Do
  12. Handing the Open Questions On

The brochure gives each of these 120 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 9 of twenty

It stands alone, and it is also the entry point to the Power Origination and PPA Desk Academy pathway.

Enrol or enquire See the whole pathway