By Daniel Gross | November 13, 2019
Overview
The Loan Life Coverage Ratio (‘LLCR’) is perhaps the second most commonly used ratio in project finance. It is most often used to:
- Size the amount of debt the project can sustain, particularly for borrowing base facilities
- To review the ability of the loan to be repaid over the total loan tenor
- To monitor the performance of the project against the loan documentation
The LLCR is a must-know for analysts and is a practical ratio to consider the total ability of the cash flow
The LLCR is monitored by the lenders throughout the life of the loan
The LLCR is a little harder to calculate than the DSCR, so we have included an example spreadsheet for you, which you can download by completing the form on this page.
Our courses are not limited to financial modeling and best practices in Microsoft Excel. We are committed to explaining how the numbers align with underlying financial and engineering concepts, transaction structures, legal documentation, market conditions and risk management approaches. We don’t just teach how to build models. We teach how to transact. Learn more about our renewable energy project finance course
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