Advanced Project Finance Modelling

Timetable for 'Advanced Project Finance Modelling' courses

Duration: 2 days

If you are in investment banking or project finance at any level of seniority, knowing how to reliably build in additional term sheet functionality, adapting or reviewing transaction models is crucial to the success of the transaction and efficiency of your team.

Advanced Project Finance Modelling is an intensive two day workshop that will give you the tools you need to build and sensitise a more advanced cashflow-focused financial model and understand the more sophisticated principles of project finance modelling. This course demonstrates how to build and test integrated financial statements as well as how to build, review or analyse financial models where debt sizing, repayment, refinancing and seniority are crucial issues. This course assumes an existing thorough understanding of best practice modelling and project finance analysis.

During this Excel-based financial modelling course you will, under personal coaching from an expert trainer, build your own project finance model from a pre-determined base built using our globally proven best practice modelling methodology SMART. You will be working on your own laptop which ensures that you will absorb all the key concepts and become more confident in using hyper-efficient Excel keyboard shortcuts saving you an amazing amount of time.

Advanced Project Finance Modelling will help you and your team to

• Understand how to build and test the more advanced aspects of a financial model including a debt service reserve account, lock-up mechanisms and debt sculpting
• Understand more advanced debt structures and their use in transactions
• Master the optimisation of debt sizing and alternative repayment methods
• Learn from professional transaction modellers at the leading edge of developments in project finance modelling
• Achieve consistent and accurate outputs with a proven best practice modelling approach - SMART

Who should attend this course?

Designed to appeal to project finance, corporate finance and investment banking professionals, this course is essential to improve your existing ability to build, review or analyse project finance models at all levels. Typical attendees include analysts, managers, senior managers and Associate Directors from investment banks. We regularly welcome Senior Management and CFOs from the industry, to give them a better understanding of how a solid financial model can assist their company in strategic decisions and negotiations.

Course outline

Day one

Learn alternative methods of principal repayment, debt structuring

• Understand how to effectively model debt sculpting
• Discuss and implement a cash sharing mechanism
• Build in switches to allow different structures to be rapidly analysed

Building and testing of a debt service reserve account

• Understand and discuss the movements in / out of the debt service reserve account
• Learn how to incorporate a debt service reserve account into the cash waterfall, profit and loss and balance sheet
• Professionally test the debt service reserve account and learn the common mistakes

Discover how to optimize the debt size that the project can support

• Single factor optimisation (automatically vary debt size to achieve a target cover ratio)
• Dual factor optimisation (automatically vary debt size to achieve a target cover and return)
• Solve using both data tables and Visual Basic

Develop and discuss how cash sweep and lock up accounts work

• Learn and discuss how cash sweeps works
• Understand what components to model and how to test the mechanics
• Use binary flags to set up the conditions for lock-up / release

Day two

Incorporating a refinancing event

• Discuss the mechanics of a refinancing – modelling amount, timing, fees and repayment
• Learn different ways to treat the refinance fee
• Discuss the concept of sequential refinancing (professional level modelling)

Develop powerful solutions for common depreciation calculations

• Remove the need for cumbersome tables
• Incorporate switches for multiple depreciation methods
• Easily replicate calculations for accounting and tax depreciation

Complete and debug integrated financial statements

• Master the structure of completed three way financial statements
• Learn how to continuously test and debug the integrated statements
• Incorporate all of the debt components (inc. refinancing) into integrated statements

More advanced application of data tables to support rapid and accurate analysis

• Produce geared and ungeared tax calculations to analyse the value of interest tax shelter
• Explore surfaces of dual variables as they impact upon a key metric
• Use VBA to control data tables so they do not adversely affect calculation speed

Share an insight into efficient multi-asset / portfolio modelling techniques

• Understand the essential differences of modelling multi-assets
• Learn how to set up a multi-asset calculation yourself
• Make changes across multiple sheets – know the easy mistakes to make

Timetable for 'Advanced Project Finance Modelling'

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