KPME Project Finance Masterclass
Project Finance Masterclass
Course Start Date: 30th July
Training Duration: 5 Days
Practical application through exercises:
- Excel Exercises
- Case Studies
Learning Outcomes
Understand types of financial and non – financial risks of a project and their possible mitigation
Learn the different financial metrics used to evaluate a project finance deal
Apply advanced excel tools in project feasibility modeling
Perform scenario and sensitivity analysis in a project finance model
Course Outlines
- What is project finance?
- Difference between project finance and traditional finance
- What are the advantages and disadvantages of Project Finance
- Various phases of the project
- Structure of a project finance transaction
- Various Risks associated in project finance and their mitigation
- What are the sources of financing?
- What are the loan repayment types?
- Key Attributes for Refinancing
- Cash Flow Available for Debt Servicing (CFADS)
- Debt Servicing Reserve Account (DSRA)
Key Project Finance Evaluation KPIs:
- Debt service coverage ratio (DSCR)
- Loan life coverage ratio (LLCR)
- Project life coverage ratio (PLCR)
- Equity IRR
- Project IRR
- Input sheet and assumptions
- Build a flexible timing structure using timing flags
- EPC and Capital expenditure schedule
- Revenue, operational and maintenance expenditures
- Developing and integrating project’s Income Statement, Balance Sheet and Cash Flow Statements
- Forecasting debt repayment and interest schedule (For different types of debt structure)
- Interest during construction & controlling circular referencing
- Repayment waterfall
- Modelling for Debt Covenants, Building mode – wise error checks
- DSCR, LLCR and PLCR
- NPV and IRR for different sponsors and investors in the project
- DSRA
- Performing one or two variable data table sensitivity analysis for key project inputs
- Performing scenario analysis by changing multiple project inputs and evaluating the impact on key model outputs
Case Study2 : The delegates will develop a fully integrated and flexible project finance model for a Solar Power Project