Project Finance Modelling (live-online)

Advanced financial modeling taught using best practice principles

Project Finance Modeling will teach you how to build a financial model to evaluate equity returns and secure non-recourse debt (known as project finance). On completing the course, you will have built a fully-functional financial model covering the period from the beginning of construction through to the end of the project's operating period.

After attending the course you will receive access to the online version of the course to help you implement what you learned in the classroom. Online access and post-course support is ongoing.

Pre-course agenda (recorded content):

Generation
- seasonality and degradation

Revenue
- contracted and uncontracted revenue

Course agenda (taught content):

Model design

Drawdown phase
- construction period expenditure
- Sources and Uses of funds
- drawdown of senior debt and equity

Senior debt interest and fees during construction
- arrangement fee, commitment fee and interest
- applying day conventions to interest
- understanding model periods and debt balances

Drawdown phase circularity
- concept of drawdown phase circularity
- creating the circularity and solving manually
- creating a macro to solve the circularity

Transition from drawdown phase to repayment phase

Repayment phase: senior debt
- simple principal payment & interest
- Debt Service Cover Ratio (DSCR)
- sculpted debt repayments to achieve a target DSCR

Repayment phase: equity
- dividends
- shareholder returns

Financial statements
- integration of the financial statements
- using double entry to balance the balance sheet

Model optimization
- assessing optimisation using a Track! sheet
- optimisation for gearing / leverage
- optimisation for DSCR
- impact of changes to tenor

Refining the funding solution
- assessing the impact of adding a shareholder loan

Running and rationalising sensitivities

Post-course agenda (recorded content):

Loan Life Cover Ratio (LLCR)
- calculating an NPV using a variable discount rate

Debt Service Reserve Account (DSRA)
- prefunding the DSRA
- solving the DSRA circularity

Fixing the repayment profile
- running post close sensitivities
- P50 / P90 optimisation