Calpine Corporation financed power generation projects using both project and corporate finance structures. The case study assignments ask students to: 1) Demonstrate how project finance reduced under-investment due to leverage; 2) Identify profit opportunities in the US power industry that justified Calpine's projects; 3) Discuss the advantages and disadvantages of project versus corporate finance for Calpine; 4) Characterize a new hybrid structure combining elements of both; and 5) Consider how financial institutions can lead credit markets with innovative structures supporting evolving client needs.
Calpine Corporation financed power generation projects using both project and corporate finance structures. The case study assignments ask students to: 1) Demonstrate how project finance reduced under-investment due to leverage; 2) Identify profit opportunities in the US power industry that justified Calpine's projects; 3) Discuss the advantages and disadvantages of project versus corporate finance for Calpine; 4) Characterize a new hybrid structure combining elements of both; and 5) Consider how financial institutions can lead credit markets with innovative structures supporting evolving client needs.
Calpine Corporation financed power generation projects using both project and corporate finance structures. The case study assignments ask students to: 1) Demonstrate how project finance reduced under-investment due to leverage; 2) Identify profit opportunities in the US power industry that justified Calpine's projects; 3) Discuss the advantages and disadvantages of project versus corporate finance for Calpine; 4) Characterize a new hybrid structure combining elements of both; and 5) Consider how financial institutions can lead credit markets with innovative structures supporting evolving client needs.
Calpine Corporation financed power generation projects using both project and corporate finance structures. The case study assignments ask students to: 1) Demonstrate how project finance reduced under-investment due to leverage; 2) Identify profit opportunities in the US power industry that justified Calpine's projects; 3) Discuss the advantages and disadvantages of project versus corporate finance for Calpine; 4) Characterize a new hybrid structure combining elements of both; and 5) Consider how financial institutions can lead credit markets with innovative structures supporting evolving client needs.
1. Demonstrate in this particular case how project finance can reduce can reduce the opportunity costs associated with leverage induced under-investment in positive net present value projects. 2. What kind of profit opportunities in the US power industry justified the development of Calpines project? 3. Which are the chief advantages and disadvantages to use project finance instead corporate finance in case of Calpines project? 4. Which are the characteristics of the new hybrid financing structure proposed in this case that incorporates elements of both project and corporate finance in an attempt to solve disadvantages associated with each structure? 5. How a financial institution can lead the credit markets by developing an innovative financial structure to support a clients evolving financial need?