Project Finance Modelling

DESCRIPTION This course will learn about best practices infinancial modelling as well as advanced project finance modelling concepts.   OBJECTIVE

• Introduce about Project Finance, including the reasons for using it and the key characteristics of a Project Finance transaction
• This course hopefully can increase awareness of best practice modelling methodologies and consistency of  approach in the context of a Project Finance transaction
• Improve the team’s Ms Excel efficiency

  MATERI 1. Master proven techniques for best practice modelling resulting in better models built faster

• Learn to work with the powerful and easy to follow SMART best practice modelling methodology
• Discuss and identify good vs bad modelling techniques using real-life examples
• Greatly increase consistency amongst your team in calculation technique and presentation

2. Discuss the life-cycle of a project finance model, from screening and structuring to financial close

• Learn the various structural phases of project finance
• Understand when to use which phase
• Build your understanding of the building block components, key details and challenges of a transaction model
• Understand the design flow of the model builder, learn how to know where to go next

3. Develop a model structure that is robust and scalable that can evolve with a typical project or transaction

• Establish key constants in the model using full scope of Excel range name function
• Build a flexible timing structure using appropriate date functions and binary flags

4. Construct modularised units that form the building blocks of a professional model including (but not limited to)

• Capital Expenditure breakdown with contingencies controls
• Production calculations with multi-path optionality on time-series schedules
• Revenue build up with detailed pricing controls
• Operational and maintenance expenses including fixed and variable items
• Understand the structure of cashflow waterfalls and the importance of ‘seniority’
• Focus on how to calculate Cash Flow Available for Debt Service
• Learn how to layout line items in an efficient and easy to communicate way

5. Understand the different types of circular references and how to avoid them

• Integrate project finance term (operational) debt
• Walk through of term debt structuring and annuity repayment through first principles
• Inclusion of target Debt Service Coverage Ratio repayment functionality
• Discussion of linear and bullet repayment structures in project finance

6. Construct and analyse debt facilities for credit or investment decisions

• Learn the importance of credit ratios and their purposes in analysis
• Build commonly used ratios in banking and finance from first principles
• Extract key metrics from ratios using a range of advanced Excel functions

7. Calculate key returns results and understand the role of dividends policy

• Discuss the reason and impact of dividends policy on valuations
• Integrate internal rate of returns and NPV, understand role of the discount rate
• Learn differences between NPV and XNPV functions and common errors in their application

8. Take control of robust and rapid sensitivity and scenario analysis through powerful Excel techniques

• Save time and deliver rapid analysis with our approach to scenario management
• Use the scenario manager to test the model in all scenarios
• Build confidence in your analysis through pre-programmed combinations of model inputs

  TRAINING METHOD Presentation Discussion Case Study Evaluation FACILITY Training Kit Handout Certificate Lunch + 2x Coffee Break Souvenir Pick Up Participant (Yogyakarta)