Advanced Modelling for Project Finance

PRINCIPLES OF MODELLING

Financial Analysis Applied to Project Finance

• Financial statements and capital-employed analysis
• Relation between accounting statements and prevalence of the cash flow plan
• “Primary” and “secondary” cash flows

• Practical workshop

• Balance sheet and capital-employed analysis

Principles of Financial Bankability

ASSEMBLING A TOOLKIT

Basic Principles of Modelling

• Financial models: fields of application.
• The golden rules of modelling.
• Computerised model structuring

• Practical workshop

• EXCEL™ configuration for programming
• Arrange initial data
• Use flags/masks to assemble a toolkit for managing events in time
• Programme construction and operating phases
• Take inflation into account

Key Indicators

• Practical workshop

• Programme ratios while respecting periodicity

Circularity

• Practical workshop

• Programming without circularity

Financial Project Structuring

• Practical workshop

• Programme capital drawdowns
• Programme debt mobilisation and repayment

ADDITIONAL ELEMENTS

Cash Flow Cascade

• Application and resources
• Cash flow presentations according to contract documentation
• Connections between the various modules of a model

• Practical workshop

• Organise cash flows in function of financial documentation

Sensitivity Scenario Analysis

• Creating a system for assessing various scenarios
• Sensitivity analysis
• Connections between the various modules of a model

• Practical workshop

• Apply sets of variables in a calculation “engine”

Analysing Third-Party Financial Models

• Profit & Loss Statements

• Practical workshop

• Model tax calculations and disbursement
• Linear amortisation for different asset classes
• Ultimate control of the model by balancing the statement

Error Verification and Correction

• Making financial statements