Project Finance Modelling (live-online)

Advanced financial modelling taught using best practice principles

Project Finance Modelling 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.

Our Project Finance Modelling training is designed for professionals who need to build, modify and understand financial models associated with project finance and other infrastructure-related transactions (including PPP/PFI projects).

The course is designed for analysts and managers with some modelling experience who have responsibility within their organisations for developing or maintaining project finance models. Many of our participants benefit from completing our Financial Statement Modelling course (either online or in the classroom) in preparation for this more advanced financial modelling course.

Course Topics

Construction costs

• sources and uses of funds
• construction finance: approaches to debt draw downs
• concept of funding circularity

Fees during construction

• financing fees
• interest during construction

Linking construction and operations

• conversion of the senior debt from construction debt to term loan
• term loan calculations
• accrued interest balances

Debt service cover ratios ("DSCR")

• 6 month current
• 12 month backward and forward
• average: simple vs weighted
• minimum

Loan life cover ratios ("LLCR")

• initial
• rolling
• testing rolling LLCRs

Project life cover ratios ("PLCR")

• initial
• rolling

Term loan

• principal repayment profiles
• debt sculpting
• ratio convergence

Equity returns

• dual timeline calculations
• XIRR

Model optimisation

• model optimisation: concepts and objectives
• introduction of Visual Basic / macro coding

Debt service reserve account ("DSRA")

• deposits and withdrawals
• stress-testing the model with cash shortfalls

Shareholder loans ("SHL")

• impact on equity returns
• thin capitalisation cash tests

Revolving credit facility ("RCF")

• standby facility
• cash tests

Maintenance reserve account ("MRA")

• deposits and withdrawals
• impact on income statement