Students at FMO
Over 9 Hours
Where Our Students Work?
Project Finance Modeling Course Objectives
Project Finance Modeling course will give you the skills to develop and analyze project finance models for infrastructure projects. The course covers essential topics in project finance modeling including debt sizing and funding, project operations, and investment returns, and will provide you with a robust financial modeling skillset for analysis of infrastructure projects.
In an online environment you will go from a blank Excel workbook to a financial model suitable for investment analysis, debt structuring and operational scenario evaluation.
This course will provide step-by-step instructions on how to build financial model suitable for analyzing project finance transactions.
By this end of this course, you will be able to build complex, real-life project finance models.
What This Course is About?
Project finance models are used to assess the risk-reward of lending to and investing in an infrastructure project. The project's debt capacity, valuation and financial feasibility depend on expected future cash flows generated by the project itself and a financial model is built to analyze this.
In The Project Finance Modeling course we will model complex greenfield toll road project finance transactions from scratch in excel.
You will learn about:
- what is project finance
- financial modeling of complex, real-life project finance transactions
- how to sculpt debt to a target DSCR
- how to create best practice macro’s and VBA codes to break circularities
- how to model Debt Service Reserve Account and Maintenance Reserve Account;
- how to model Shareholder Loan, Revolver and Blended Equity IRR
- building project finance models in excel that cover the entire life of the project
- carry out valuation analysis based on the discounted cash flow (DCF) and internal rate of return (IRR) methods
- preparing trusted project finance models tailored to investors and financiers, with a focus on valuation and risk
- financial models that are designed according to the F.A.S.T standards
This is the same comprehensive financial training used to prepare analysts and managers at top financial institutions and infrastructure funds.
How Does It Work?
The course length is over 9 hours.
First, we will review basic project finance theory, so you understand all essential components of project finance transaction.
Then, in the second part, we will go over the toll road project case study and review modeling methods to improve our productivity in excel. We will then dive into building our project finance model. We will work on the construction costs, funding and financing fees.
In the third part, we will build fully integrated, 3 statements financial model which will include income statement, balance sheet and cash flow statement.
In the forth part, we will model such items as coverage ratios, debt sculpting, debt service reserve account and maintenance reserve account, revolver, shareholder loan. We will also carry out valuation of the project using discounted cash flow ( DCF ) and internal rate of return ( IRR ) methods. This is a core part of any project finance model.
Finally, in the fifth part, we will introduce advanced financial modeling topics such as equity first funding method, debt sizing automation, debt service reserve account automation and scenario analysis.
Is This Course For You?
Yes, if you need to build, review or analyse project finance models within the infrastructure, oil & gas or mining sectors.
Typical students include analysts, managers, senior managers, associate directors, financial advisors, financiers and CFOs from project companies, investment banks, private equity and infrastructure funds.
You will need previous exposure to Excel in a financial modelling context and basic knowledge of investment concepts such as NPV and cash flows.
In this video we will go over the course structure and describe what we will learn in each part of the course. The course is divided into five parts:
- in part 1, we will learn basic project finance theory, so we understand in and outs of project finance before we begin modeling;
- in part 2, we will introduce the toll road case study, review the modeling methods to increase your excel productivity and we will jump into excel to model the construction period in our project finance model;
- in part 3, we will model out financial statements which will include income statement, balance sheet and cash flow statement.
-in part 4, we will introduce project finance items such as cover ratios, debt sculpting, debt service reserve account (DSRA), maintenance reserve account (MRA), revolver and shareholder loan. We will introduce to the problem of circularity in project finance models and we will learn how excel VBA can help us to resolve this circularity in excel. We will carry out valuation and model optimization in this part.
- in part 5, we will go over the advanced project finance modeling methods such as equity first financing, debt sizing macros, DSRA macros and scenario analysis automation.
It is highly recommended to watch this video so that you have the big picture of our journey ahead.
In this lesson we will be talking about what project finance is in the context of raising capital to fund construction of infrastructure projects. We will review distinctive features of the project finance and how project finance is different from the corporate finance.
In this lesson, we will review the important financial players, that participate in project finance transaction. These include investors, which are called project sponsors in project finance. Project sponsors, as we shall see, can further be divided into industrial investors, financial investors and sometimes government may also be an investor in the project.
Lender is another financial player which participate in project finance transaction. In fact, lender make project finance possible, because, typically, a majority of construction costs are financed with debt in project finance transaction. We shall see that due to transaction size, lenders typically unite and form a syndicate to arrange a syndicated loan to the project.
In this lecture, we will talk about the role of the Government and public private partnerships (PPP) in project finance. We will look at the development of PPA for power industry in the US and its effect on the PPP development. We will then review a dominant PPP form - concession agreement and its main varieties.
In this lesson, we will be looking at the risks in project finance transactions. As in any business venture, the project company in project finance faces 4 types of risks, these are project specific risks, macroeconomic risks, political risks and natural disaster risks. We will discuss these risks and see how they are allocated to the party which is best capable of managing those risks.
In this lesson, we will be looking at the capital and operating cash flows in project finance at different stages of project development. We will review the composition of project costs and project's Capex, different financing methods and forms, and important cash flows for lenders and equity investors.
In project finance, lenders usually impose strict restrictions on how the project company uses its cash. Cash movement in project company is controlled by means of control accounts and cash flow waterfall structure. In this lesson we will review these two important aspects of project finance transaction.
In this lesson we will talk about the covenants in project finance documentation. A covenant, also called an undertaking, is a promise by the borrower to the lender to do something or refrain from doing something in return for getting the loan. Covenants appear in the loan agreement. The financial covenants are extremely important to understand for modelers, because they are part of project finance models.
In this lesson we will review the case study which will serve as a basis for our project finance model throughout the course.
Frequently Asked Questions
The course is divided into 5 parts.
In part 1 we will go over the basics of project finance theory. In part 2 we will develop a timeline and model construction costs and funding. In part 3 we will model financial statements. In part 4 and 5 we will focus on modeling project finance including cover ratios, debt sculpting, Debt Service Reserve Account, Major Maintenance Reserve Account, revolving credit facility, shareholder loans, circularity, valuation, sensitivity and scenario analysis
Part 1 consists only of concept explainer videos and quizzes.
Each module in part 2 to part 5 comes with concept explainer video, a quiz and a financial modeling video. Each financial modeling video has "before" and "after" excel files so you can practice what you have learnt from the video lessons. And, final lesson has final project finance model.
The course is based on the toll road case study.
Video content length 9 hours 27 minutes.
You’ll also get personalized, one-on-one support from me, so you can get your questions answered every step of the way.
When you enroll in Project Finance Modeling course, you'll be able to ask me questions around how to apply what you're learning in the course (see the screenshots below).
It's kind of sitting in the class asking me questions but through an ongoing email chain comments whenever you need help.
Absolutely. Each financial modeling video has "before" and "after" excel files so you can practice what you have learnt from the video lessons. And, final lesson has final project finance model.
Yes! If you don’t feel like you’re mastering project finance modeling and analysis in the first 30 days of your enrollment, just email me and let me know. I’ll give you a full refund - no questions asked.
No catch here. My objective is to get my courses out to as many students that needed them as possible, which results in lower pricing as a starting point. Right now, I’m able to answer questions thoroughly at this price point. However, as enrollments continue to grow, I will probably need to increase enrollment price to reduce the number of students enrolling every month so I can continue to provide the level of personal attention I want to for everyone who decides to enroll in the course.
FMO specializes in developing your financial modeling skills in project finance, investment banking, asset and wealth management. While we are a young firm, the team has decades of experience of complex financial transaction modelling.
The course is taught by Gregory Ahuy. Gregory started his career in investment banking as M&A analyst in London at Renaissance Capital - leading Russian investment banking firm https://www.rencap.com/. He was later relocated to Moscow to help with some of the biggest Russian M&A deals in mining and infrastructure sectors. Gregory continued his career at InfraRed Capital Partners, one of the largest infrastructure funds, focused on sourcing and executing greenfield and brownfield infrastructure projects in Eastern Europe. Later, Mr. Ahuy joined Eneco, one of the largest energy companies in the Netherlands where he led several renewable energy projects.
If you have any questions, please send us an email: [email protected]