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.

Course Content

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

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 info@riverstonetraining.com.sg

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

Project Finance Modeling