The course is designed to help analysts to create and use project financial models on a consistent and focussed basis, specifically for the renewable power generation industry.
The principal aim of the course is enable participants to create, use and analyse a project finance model, specifically for the renewable energy industry. This will be done by reviewing best practice in model structures, and then building up calculations stage-by-stage to create an entire model. We will then use Excel tools to analyse outputs, highlight areas of risk and perform sensitivity analysis.
The learning methods used are practical, as practicing newly-learned techniques builds skills more deeply and more effectively. Each section will be covered briefly as a module in a traditional class style, but the real learning experience will be found in the exercises within each module. Suggested solutions to each stage will be provided and discussed, and participants will be encouraged to review their work independently. Further supporting materials and additional exercises will be available for further post-course learning, with ongoing support from the facilitator.
An entire model will be created from scratch. Starting with basic assumptions and input data, delegates will build a model with financial structures, inflation, cash flow waterfall, balance sheet and P&L, tax and dividends, equity returns and valuations, ratios and cover factors, and sensitivities.
Practical: review an existing model to check for compliance with best practice
Practical: producing a model framework for a power generation project using best practice
Practical: adding revenue, production & operating assumptions into the renewable energy model
Practical: Adding CAPEX and depreciation schedules to the model
Practical: Add a loans schedule which will feed into the balance sheet, cash flow and income statement of the model.
Practical: completing and checking the financial statements in the model.
Practical: adding tax and dividend calculations into the model.
Practical: add ratios to the model and adjust the dividend calculations so they are constrained by covenants based on debt ratios.
Practical: add WACC to the model and calculate a capacity charge to meet cost of capital requirements
Practical: create a valuation of the equity in the model
Exercise: Add break-even calculations, data tables and scenarios to the model.
Exercise: Add a succinct management summary for decision-makers who will use the model.
|Training Course||Training Course Summary|
|Project Finance||Develop your understanding of the difference between project finance and other corporate debt financing alternatives|
|The Structuring and Documentation Issues in Project Finance||
Project finance is at heart a form of secured lending albeit one which offers a unique set of challenges to all stakeholders. The obvious risks are amplified by high levels of gearing and limited or non-recourse nature typical of project financing.
This project finance documentation course is aimed at Lawyers and other professionals who are involved in project finance and infrastructure deals and who need to understand the core principles, key legal issues and techniques encountered in structuring robust project financings.