Beacon
FinRecruit
FinConsult
Future of Finance
Linkedin

Beacon FinTrain

Provides an array of professional business and financial training services that stem from improving a corporate's treasury workflow —all the way to efficient, finance training programs.

Course Overview

This Course covers the application of problems and techniques in project finance with overview of advanced model timing and switching functionality, linking financial statement, revenues and cost calculations, and understanding of ratio analysis as well as will gaining a deep understanding about the loan agreement structure and deal participants with considering the risk and mitigants area.
Also, During the course, participants also gain an insight into how to tailor the outputs of the model to end-users, interpret the results, run sensitivities and optimization processes, as well as perform some degree of testing to reduce to incidence of modeling errors.
By the end of the course, you will be able to break down the analysis into its component parts and make better business decisions.

Learning Outcome

Differentiate between what makes a good model and a bad one.

Follow a logical, structured and disciplined approach towards model building.

Build a model from start to finish.

Gain a deeper understanding of project finance transactions, the types of models used and their typical structure.

Learn how to translate key financial and commercial aspects into Excel.

Understand better how to tailor the outputs of the model towards end-users and interpret the results.

Course Outline

  • Project Finance defined (limited recourse characteristics, etc.)
  • Project finance uses and applications: The rationale for
  • using project finance
  • Phases in project financing
  • The role of contracts in project finance
  • The role of security in project finance
  • Force majeure

  • Financial modeling rules – design, design, design
  • Modular design, the fundamentals & Design questionnaire
  • Discuss and identify good vs. bad modeling techniques
  • Project and PFI modeling defining
  • Creating a flexible non-circular funding scheme
  • Dealing with varying length forecasting periods

  • Some popular design approaches
  • Creating a date flexible framework, varying period length from construction to operation
  • Build a flexible timing structure using appropriate date functions and binary flags
  • Flexing timing of events -Using flags
  • Flexible consolidation of periods to years – Index, Offset, Sumif

  • Lookup tables – alternatives for generating revenues based on different load factors and thermal efficiencies
  • Revenue builds up with detailed pricing controls
  • Operational and maintenance expenses including fixed and variable items
  • Forecasting and modelling of production metrics
  • Debt structuring and repayment prole optimization

  • Project Finance model inputs
  • Project Finance model outputs
  • Macroeconomic assumptions
  • Project costs and funding
  • Operating revenues and costs
  • Loan drawings and
  • debt service
  • Equity drawings
  • Debt coverage ratios
  • Equity returns (NPV and IRR)

  • Project Finance model inputs
  • Project Finance model outputs
  • macroeconomic assumptions
  • Project costs and funding
  • Operating revenues and costs
  • Loan drawings and debt service
  • Equity drawings
  • Debt coverage ratios
  • Equity returns (NPV and IRR)

  • LLCR definition
  • DSCR definitions
  • Inclusion of target Debt Service Coverage Ratio repayment functionality
  • Build commonly used ratios in banking and finance from first principles
  • Extract key metrics from ratios using a range of advanced Excel functions rate
  • Learn differences between NPV and XNPV functions and common errors in their application

  • Establish key constants in the model using the full scope of Excel range name function
  • Develop a model structure that is robust and scalable that can evolve with a typical project or transaction
  • Excel’s scenario manager
  • Use the scenario manager to test the model in all scenarios
  • Take control of robust and rapid sensitivity and scenario analysis through powerful
  • Excel techniques:
  • VLOOKUP
  • Index, Choose, and Offset
  • Implementing alternative debt structures

  • Design approach
  • Dealing with circularity – interest during construction and sizing commitments, using goal seek
  • Creating a simple funding scheme with term debt and residual equity funding

  • Parties to a project Finance
  • Necessary contracts
  • Environmental Consideration
  • Political and Regulaton1 background

  • Terms
  • Pricing
  • Covenants
  • Representations and warranties
  • Events of Default

  • Senior debt
  • Banks
  • Insurance companies
  • Public markets
  • Mezzanine debt
  • Equity
  • Financial Investors
  • Strategic Investor

  • Project Finance risk and mitigates

Who Should Attend

Accountants =Project Finance Modelers=Financial Advisors =Credit Analysts/Managers=Corporate RMs =Risk Managers

Register Now