Project finance modelling

Event type: Mastercourse

A robust and flexible method for building project models

Date Location Price  
2 July 2012 - 09:00 London - two day workshop Price: GBP 1,390.00
Members: £1251.00
Corporate discount scheme: £1120.00
+ VAT on all prices. Accommodation not included.
6 November 2012 - 09:00 London - two day workshop Price: GBP 1,390.00
Members: £1251.00
Early booker: £1120.00
+ VAT on all prices. Accommodation not included.

Who will benefit

Those working in or alongside the project finance or PFI world, who need to develop the skills to build or interpret integrated Excel based models.

What you can gain

A robust and flexible method for building project models, and established design solutions to the common challenges presented by project models. In particular, you will address the needs for time flexibility, flexible capex linked financing avoiding circularity, and scenario management. The course will be built around a live project case which will model a merchant or tolling IPP power project.

Speaker Details

The speaker will be drawn from a pool of qualified professionals who specialise in this subject. Having worked for leading organisations they will relate the course content to real life case studies.

Outline

Design principles and best practice.

  • First rule of financial modelling - design, design, design.
  • Modular design, the fundamentals.
  • Design questionnaire.
  • Project and PFI modelling defining in the problems.
  • Creating a flexible non-circular funding scheme.
  • Dealing with varying length forecasting periods.

Time management.

  • Some popular design approaches.
  • Creating a date flexible framework, varying period length from construction to operation.
  • Flexing timing of events - using flags.
  • Flexible consolidation of periods to years - index, offset, sumif.

Construction period sources and uses.

  • 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.

Building the model.

  • Lookup tables - alternatives for generating revenues based on different load factors and thermal efficiencies.

Cash flow cascade and reserves.

  • Typical priority of payments.
  • Debt service reserve account.
  • Capital maintenance reserve.
  • Building a cash flow cascade.
  • Accounts integration.

Project ratios.

  • LLCR definition.
  • DSCR definitions.
  • Debt repayment profile optimization.

Model flexibility - scenario management.

  • Implementing alternative debt structures.
  • Excel's scenario manager.
  • Vlookup.
  • Index, choose and offset.
  • Visual basic tools.

Consolidation.

  • Dealing with multiple operating units and consolidating into a pro forma group accounts.
  • Merger accounting.
  • Consolidation eliminations.
  • Consolidation template methodology.

12 CPD hours (where applicable)

Prerequisites

Delegates should have some experience of the fundamentals of modelling.