Project Finance Modeling

The objective of this program is to provide knowledge and practical experience about the creation of comprehensive and flexible project finance models used in financial planning, structuring and fundraising purposes.

 The participants will gain insights into the step-by-step process of creating financial models using Microsoft Excel, putting checks and audits and finally analyzing the same.

 Overview

This course will equip all participants with various tools to aid in complex business decision making by incorporating multiple factors operating in the dynamic business environment. At the end of the course, each participant will be able to create a project finance model independently and carry out analysis to take the best decision for their company.

 Who should attend                           

All individuals who want to improve their financial modeling skills should attend this course

• 
  
• Middle to senior managers in the project finance and fundraising department of the company
  
• All professionals who want to deal or currently deal with financial modeling in their company
  
• Consultants, advisors and other professionals who wish to improve their modeling skills
  
• Middle to senior managers from investment banking, banks, financial institution,  
  

Methodology                                                 

The non-theoretical methodology which includes interactive discussions, case studies, and assignments to understand the concepts and their applicability. As a policy, we limit the class size to 12 participants so that we can provide attention to each participant and ensure their objective is achieved.

 We request you to please bring your laptop with Microsoft Excel installed to the class.

Trainer

All our trainers are carefully chosen by us and possess a rich and vast experience in the financial sector. This course conducted by an experienced training consultant having more than 16 years of industry experience with some of the world’s leading business institutions, specializing in project finance, investment banking, and private equity.

Module – 1

Setting up a project finance model and building projections

• 
  
• Overview of best industry practices for financial modeling and layout
  
• Structure of Project finance and its stakeholders
  
• Analysis of project information
  
• Steps for creating financial models
  
• Proper presentation of various sheets and setting up the model input dashboard
  

Module – 2

Preparation of Layout and timing related information

• 
  
• Discussion on the model development process and flow
  
• Discussion on the best industry practices and standard  for layouts and structure
  
• Preparation of the standard model template to ensure consistency between worksheets
  
• Preparation of quarterly and annual flags
  
• Other key flags like construction period, operational period, debt period, etc
  

Module – 3

Preparation, Assumption sheet

• 
  
• Preparation of the assumption sheet
  
• Analysis of project assumptions and their rationale for construction timelines, revenues & costs, assets and liabilities’ assumptions - operating cost, capex, leverage, etc
  
• Shortlisting assumptions and applying adjustments
  
• Applying various forecasting tools, etc
  

Module – 4

Importance of Capex and depreciation

• 
  
• Different ways to model the Fixed assets and depreciation
  
• Schedule of amortization of intangible assets
  
• Special concessions requirement for fixed assets and depreciation benefits
  
• Tax and accounting depreciation, if any
  

Module – 5

Preparation of debt and equity schedule  

• 
  
• Calculation of fund requirement and various sources of funding and source to service the same
  
• Calculation of Interest During Construction (IDC)
  
• Waterfall mechanism to calculate the  debt requirement and cash flow available for debt service
  
• Calculation of cost of various types of debt including arranger fees, interest, annual fees, etc
  
• Various types of repayment structure like annuity, sculpted, bullet, etc
  
• Preparation of DSRA and other cash reserves
  
• Management of covenants of the banks
  
• Calculation of the cash flow available to equity shareholders
  
• Dividend calculation with its limitations including lender restriction etc
  

Module – 6

Calculation of Net Taxable Income and final tax   

• 
  
• Calculation of net taxable income including adjustment of tax and concession benefits
  
• Adjustments for capital allowances, disallowable costs, and loss carry-forwards
  

Module – 7

Importance of key schedule and their application

• 
  
• Working capital schedule 
  
• Fixed assets and depreciation
  
• Schedule of amortization of intangible assets
  
• Preparation of debt and interest
  
• Taxation
  
• Equity fundraising
  
• Equity gap and funding
  

Module – 8

How to create working capital schedule

• 
  
• Components of cash and non-cash working capital
  
• Forecasting working capital requirements
  

 Module – 9

Integration of income statement, balance sheet, and cash flow statement

• 
  
• Industry practices on handling exceptions
  
• Integration of Cash Flows, Income Statement and Balance Sheet as per best industry practices
  

Module – 10

Establish scenario and sensitivity analysis

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• Use of data for sensitivity analysis
  
• Identifying suitable scenarios and sensitivities and their impact on financial analysis
  
• Stress testing on a model
  
• Managing critical pitfalls in the analysis
  

 Module – 11

How to do model review and control

• 
  
• How to insert various test and checks in the model
  
• Identify common model errors and fix them
  
• Best industry practices
  

Module – 12

How to apply different financial analysis techniques on the model

• 
  
• Importance of PV, NPV, and IRR and their link with company valuation
  
• How to analysis various capital budgeting decisions
  
• Calculation of multiple ratios- Payback period, Equity IRR, Project IRR, DSCR, Debt/Equity etc
  

 Module – 13

How to manage the circularity and apply macros in the model

• 
  
• How to handle Circular References in financial modeling
  
• Effect of circular references on the model
  
• Various types of  circularities
  
• How to apply macros on the model and break the circularity
  

If you need further information, please visit www.riverstonetraining.com.sg or send mail at [email protected]

Riverstone – Corporate Training https://www.riverstonetraining.com.sg

Host or Publisher Riverstone Training Pte Ltd