Project Finance Modelling

For professionals who need to build, review or analyse project finance models for investment and lending decision-making. This include:

• Corporate and investment bankers
• Sponsors, contractors, financiers and investors of projects, government agencies
• Financial analysts, credit analysts, investment analysts
• Project managers, engineers, consultants
   

PREREQUISITES

Participants need to have a basic degree with relevant experience or exposure in project financing; proficient in using excel (basic mathematical operations) and have working knowledge of accounting and financial statements. A personal laptop with Windows OS and Microsoft excel is also required.

• Determine key financial matrices used to analyse the feasibility of projects
• Model different funding priorities in project financing
• Incorporate timing flexibility into the financial model
• Build a flexible working capital model based on varying terms of trade
• Build cash flow cascades to forecast debt capacity in project financing
• Construct scenario analysis to challenge model inputs and assumptions
• Learn techniques to audit project finance models and resolve circularities

Financial Modelling Layout

• Overview of best industry practices for financial modelling 

Project timeline and event flags

• Timing the occurrence of events in the model
• Create event flags for monthly, quarterly, semi-annual flags
• Key flags
• Construction period flag
• Operations period flag
• Manpower flag
• Funding drawdown sequence flag
• Debt period flag
• Loan repayment flag
• Working capital flag

Capex and Depreciation Schedules

• Capex schedule
• Create fixed asset schedule and depreciation schedule
• Amortisation schedule

Debt & Equity Modelling

• Sources of funding
• Equity and funding gap
• Order of funding commitment
• Project debt capacity calculation
• Interest repayment
• Debt repayment

Income statement modelling

• Project revenue ramp up model
• Unequal monthly cost schedules
• Fixed and variable cost schedules

Working capital modelling

• Link between income statement, working capital and cashflow statement

Cash flow modelling

• Cash flow available for debt service
• Cash flow waterfall – payments seniority
• Reserve accounts top up
• Non-operating inflow
• Non-operating outflow
• Circular interest computation

Balance sheet modelling

• Cash account balances
• Various reserve account
• Account receivables
• Inventories
• Debt account balance
• Capitalised assets and depreciation
• Standby line usage and amount
• Equity
• Retained earnings

Establish scenario and sensitivity analysis

• Use of data for sensitivity analysis
• Identifying suitable scenarios and sensitivities and their impact on financial analysis

Model Audit

• How to insert various tests and checks in the model
• Identify common model errors and fix them

Apply different financial analysis techniques 

• Importance of PV, NPV, and IRR and their link with company valuation
• How to analyse various capital budgeting decisions
• Calculation of multiple ratios- DSCR, LLCR, PLCR Debt/ Equity etc

Handling circularity

• How to handle circular references in financial modelling
• Effect of circular references on the model

As part of the requirement for SkillsFuture Singapore, there will be an assessment conducted at the end of the course. The mode of assessment, which is up to the trainer’s discretion, may be an online quiz, a presentation or based on classroom exercises.

Participants are required to attain a minimum of 75% attendance and pass the associated assessment in order to receive a digital Certificate of Completion issued by Singapore Management University.