LEARN ADVANCED TECHNIQUES • BUILD ROBUST PROJECT FINANCE MODELS • TACKLE COMPLEX PROJECTS

This three day intensive course will enable you to extend your debt modelling capabilities in order to drive the transaction process. With a continuous focus on robustness and flexibility, and analytical techniques, this course is guaranteed to boost your project finance career and give you all the tools to reach financial close. You will learn the modelling principles and structured approach that are applicable across a range of industries.

Address Key Issues
Learn scenario & sensitivities calculation and management

Gain A Full Understanding
Build sophisticated and robust project finance models

Key Takeaways

Gain advanced knowledge, techniques and best practices in project finance modelling

Learn how to construct and use a robust project finance model from scratch

Where the financing is done with limited recourse to the company behind the project, the financing is dependent solely on the cashflows generated by the individual project itself. It becomes critical that the modelling is done to a high standard. In particular the model will need to test for the volatility of the cashflows. It is not the base case that kills, but the occurrence of conditions other than the base case over the life of the project.

The modelling of the project is the key part of the 3-stage analytical process:

1. Identification of the circumstances in this particular project that could cause cash-flow volatility – i.e. risk identification;
2. Quantification of the cashflow impact in the event that those risks would occur;
3. Structuring the transaction to safeguard it from the potential occurrence of those risks.

In addition, the model may be important for other purposes, for example to determine the optimal financing structure, or to determine the feasibility through valuation of the project;

IN JUST 3 DAYS YOU WILL

  • Strengthen your models against global best practices
  • Rebuild and analyse other financial models
  • Understand complex project finance infrastructure
  • Learn using real life case studies
  • Be able to successfully execute project finance transactions

MEET YOUR TRAINER

Our Expert Trainer has a exceptional blend of experience in Law, Corporate Banking, Investment Banking, Corporate Financial Management, General Management and Workout.

During the course of his professional experience, our Expert Trainer has consulted on a range of power generation, LNG, mining, and petrochemical projects, as well as undertaking project vetting for a number of clients. He has worked for a number of the largest financial institutions around the world in various senior finance-related roles.

He has gained a worldwide reputation for the quality and depth of his training courses which have been developed and presented over 25+ years.

Organisations that will benefit:

  • Bankers
  • Sponsors
  • Investors
  • Construction Firms
  • Energy Operators
  • Telecom Operators
  • Rail
  • Airports

Who will attend:

  • COOs CFOs
  • Project Managers
  • Financial Managers
  • Analysts
  • Senior Managers
  • Associate Directors

COURSE AGENDA

Day 1: Project Finance Modelling Fundamentals ⇓

  • Model Design
    Financiers focus on debt serviceability whilst Sponsors focus on the valuation – the Sponsor IRR that the project generates. The course will embrace both perspectives.
  • Modelling Best Practice
    There are 8 principles of modelling best practice. The different principles will be addressed progressively throughout the programme as opposed to a formal session, with illustrations of the problems if the principles are not respected.
  • Practical Work – Setting up the model – timelines, flags
  • Construction Phase
    A critical worksheet within a project financing model. However, there is a large commonality in its structure across all sectors.
  • Practical Work – Implementing a Construction worksheet.
  • Volatility Modelling Explained
    There are 4 types of operating cost from a modelling perspective and 6 characteristics that need to be captured. The Operating Costs worksheet is the most important in the model because it is the main determinant of cashflow volatility.
  • Practical Work – Modelling of Operating Costs.

Day 2: Analysis & Concepts ⇓

  • Generation, Revenue and Operating Costs
    Having dealt with operating costs in a generic context, it is proposed to adapt it to a power generation project, since power generation is the largest sector to use project financing structures.
  • Practical Work – Implementing the model to Free Cash Flow stage.
  • Financing
    The financing structure that lenders will adopt will differ between the various sectors – social infrastructure, transport infrastructure, power generation, telecoms, extractive industriew, etc. We review each and then implement them in a series of practicals.
  • Practical Work – implementing several different styles of financing worksheet – annuity, straightline, sculpted to ADSCR, sculpted to LLCR, cash sweeps.

Day 3: Applying the concepts ⇓

  • Analysis
    Models are built to be subjected to analysis. The precise detail and nature of the analysis will change from transaction to transaction. A well-built model has sitting on top of it a single worksheet where the analyst spends all of his/her time, controlling the inputs, observing the outputs and driving the functionality – scenarios, sensitivities or break-evens. If the analyst ever needs to leave the Analysis worksheet the model hasn’t been built properly.
  • Practical Work – Implementing an Analysis worksheet.
  • Some Specialised Areas
    Explanations and illustrations of the modelling of capital allowances, deferred tax, depreciation and cashflow waterfalls.
  • Procedures Upon Receiving a Model
    Any analysis performed on a model is nonsense if the model itself is nonsense or if it has material errors. There is no shortcut to model audit – to ensure that there are no errors at all – every unique formula in the model would have to be checked. But Model Review is a procedure that allows a recipient to discover if the model has credibility within a maximum time-frame of 30-40 minutes.
  • Final Touches to the Model

BROCHURE

IN-HOUSE

If you have a team of three or more, our experts can come to you!

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