What does the program cover?
Develop a project finance model and analyze financing proposals at our two-day program.
Starting from scratch, the delegates will develop a fully integrated and flexible project finance model, forecast project cash flows and key KPIs using advanced excel tools and best practices in financial modeling.
Learning Objectives
- Apply advanced excel tools in project feasibility modeling
- Develop EPC (Engineering, Procurement, and Construction), CapEx (Capital Expenditures) and funding schedule using timing flags
- Build a project's flexible debt repayment schedule for various sources of financing
- Model key financial drivers used to evaluate a project finance transaction
- Perform scenario and sensitivity analysis in a project finance model
Who should enroll?
Professionals and graduate students working or aspiring to work in:
- Corporate finance professionals
- CFOs
- Finance Managers
- Finance Controllers
- Management Accountants
- Investment Bankers
- Consulting Professionals
- Credit Analysts
- Debt Syndication Consultants
- Corporate Bankers
Program Agenda
Introduction to the Project Finance Model
Introduction to the Project Finance Model
- Grasp advanced Excel tools in Project Finance modeling
- Explore the differences between project finance and traditional finance
- Understand the life-cycle of a project finance transaction and model
- Developing the model
Timing and Debt Structure
- Input sheet and its assumptions
- Build a flexible timing structure using timing flags
- EPC and CapEx schedule
- Revenue, operational and maintenance expenditures
- Debt modeling
Forecasting
- Forecast cash flow available for debt servicing (CFADS)
- Forecast debt repayment and interest schedule (For different types of debt structures)
- Interest during construction & controlling circular referencing
- Repayment waterfall
- Reserve accounts, cash sweeps
Analysis and Projection
Modeling for Key Model outputs
- DSCR (Debt Coverage Ratio), LLCR (Loan Life Coverage Ratio) and PLCR (Project Life Cover Ratio)
- NPV (Net Present Value) and IRR (Internal Rate of Return) for different sponsors and investors in the project
- DSRA (Debt Service Reserve Account)
Scenario and Sensitivity Analysis
- Perform one or two variable data table sensitivity analysis for key project inputs
- Perform scenario analysis by changing multiple project inputs and evaluate the impact on key model outputs
Case Study: Develop a fully integrated and flexible project finance model using an Instructure Project Finance transaction. (Sector Focus: Power, Transportation)
