Debt coverage ratios (e.g.: DSCR, ICR, LLCR, PLCR).Relevant model outputs will depend on who the model users are: Model Users Scenarios should be compared side by sideīased on changes in inputs and assumptions, the impact of key outputs are compared side by side.Variations might be a fixed amount or % change to inputs.Scenarios might include a ‘base case’, ‘upside case’, and ‘downside case’.Enroll Today Project Finance Model Scenario AnalysisĪfter an initial financial model is built, scenario analysis is conducted based on variations to model inputs and assumptions. Learn project finance modeling, debt sizing mechanics, running upside/downside cases and more.

Step-by-Step Online Course The Ultimate Project Finance Modeling PackageĮverything you need to build and interpret project finance models for a transaction.

Included financial statements (Income statement, balance sheet, cashflow statement).Contain a summary of project metrics important to management for informed decision making.Construction, operating and maintenance costs.Model should be set up to run multiple scenarios using different inputs and assumptions.Derived from technical studies, financial market expectations, and understanding of the project to date.Project finance models are built in excel and need to follow standard industry best practices which have the following minimum contents: Inputs Key Components of a Project Finance Model Below is an illustrative example of the evolution of a project finance model: Suitable for assisting the client in making better and more informed decisionsĪ project finance model is used throughout the project term and will need to get updated depending on the phase of the project.All financial evaluations of a project depend upon projections or expected future cash flows generated by activities of a completed project and a financial model is built to analyze this. Project finance modeling is an excel based analytical tool used to assess the risk-reward of lending to or investing in a long-term infrastructure project based upon a complex financial structure.

Project financial modeling