Dates
30-31 October 2008
21-22 May 2009
22-23 October 2009
Course
Overview
Modern project finance transactions
require a high level of expertise in building financial
models which are reliable and flexible to accommodate
the changing requirements occurring during the life of a
project.
The course covers such issues as how to
model the role of debt, debt covenants, cash waterfalls,
inter-creditor relations, restructuring and rescheduling
of debt, how to model risk, and the role of equity and
its rewards.
In the course of the two days delegates
will build and evaluate a range of project finance
models, covering projects as diverse as UK
Public-Private Partnerships, major energy investments
and private hospitals.
Delegates will overcome
the most complex aspects of building a reliable model,
including uncertainty, currency and timescale
mismatches, debt amortisation, depreciation, control
account waterfall, cost structures, and the ability to
easily shift time scales, as well as the ability to
identify and control key sensitivities through
spreadsheet simulation.
Course
Methodology
This course will teach you all the available
techniques and how to practically apply them through the
use of Excel. An extensive use of case studies will be adopted to illustrate the principles covered. Ultimately delegates will get
practical tips on layout and style in building and
analysing user-friendly models which are available as
additional benefits of the course.
Who
Should Attend
This course is designed for
delegates who are seeking to improve their technical
modelling skills
 Bankers and financiers involved in project
finance
Directors and business development executives from
corporates, equity
sponsors and
consultancies
Trade finance managers
Accountants and
Lawyers
Each
participant will be required to bring a laptop running
Microsoft Office with a USB Port to the
seminar.
Course Content
Day
1
1. Project cash flow
Limited
recourse
Quantification and allocation of risk
Structuring and financing
solutions
Project finance experience worldwide
Case
Study: Project finance worldwide
2. Free
Cash Flow and Coverage Ratios
Definitions and
analysis
Revenue and cost modelling
Cash adequacy, recourse, standby and
liquidity
Financial coverage ratios and the bank
perspective
Case Study: Modelling
ratios
3. Equity valuation
Equity NPV/ IRR and
project IRR
XNPV, XIRR, MIRR
Modelling cash flow and ratios:
Allowing for
accountancy - depreciation, tax and capital
allowances
Case Study: Valuation and Cash Flow
models
4. Project dynamics
Demand and Capacity
Driven Forecasts
Consistency of Capital Expenditures and
Volume
Operating Revenue and Expense Drivers
Cash flow design
Case
Study: Revenue and cost models
5. Using
Excel for modelling
Worksheet organization
Data input,
management and verification
Use of colour/add-ins
Naming of
cells
Location of input variables
Review of Excel functions and their
use
Macros
and their use
Goal seeking
Optimisation
Circularity and how to resolve it
Working with range
names
Graphs
and charts
What is needed from Excel and what is
superfluous
Principles of spreadsheets and workbooks
Case
Study: Evaluating good and bad Excel financial
models
Day 2
6.
Project Finance in practice
Design tolerance
![]() Dealing with
escalation/inflation
Dealing with non-correlated variables
Pre-completion
elements
Estimating damages
Case Study: Examples of
Excel project modelling
7. Financial
Models for project finance
The fundamentals of project
finance model design:
Objectives of project finance models
Design, testing and
feedback
Model sensitivity and auditing
The role of macros
Exercise:
Building a basic project finance model
8.
Project Finance model issues
Depreciation of fixed
assets
Control accounts – waterfall/cascade
Status checking
Modelling
securitization in project finance
Working capital
Case
Study: Modelling cash flow waterfalls
9.
Approaches to rating in Project Finance
Models
Debt issues sheet
Financial Statements
Introducing flexible time
dimensions
Debt amortisation schedules
Senior debt, mezzanine and equity
tranches
Case Study: Rating Agency models of
project finance transactions
10. Using
Project Finance Models
Input of Models to the Decision-Making
Process
Modelling a PPP transaction
Deciding between corporate and project
finance
Benefit allocation between stakeholders
Case
Study: Review of several project finance models and
their decision-making input
| Times |
Cost |
Law Society CPD Hours |
| 09.30 - 17.00 |
£1320 + VAT = £1551.00 |
12 |
|
