Infrastructure & Project Finance Modeling

Course content

Develop a best-practice financial model and optimize it for both debt and equity investors for an infrastructure project finance deal.

Participants in the class will learn the concepts to develop a financial model related to Public Private Partnerships (PPPs / P3s) for both social and economic infrastructure. Whilst the course touches on a number of infrastructure sub-sectors, the main case study is that of a PPP hospital project. A toll road model is also provided with a description of the revenue and cost drivers.

The course covers a broad enough set of topics such that it is also suitable for those in other project finance sectors such as power or mining.

Learn from industry leaders and ivy league professors either in-person at a public session, on-site at your offices or campus, online, or our new live streaming courses.

Online Self paced Infrastructure & Project Finance Modeling available July.

Live Streaming  online training courses

Live streaming  online training courses are as close as you get to the experience of an in-person class. Participants will develop a full financial model together with the instructors, with the ability to ask questions and seek individual support and feedback. The courses include all of the benefits of live classroom training.

The course includes:

  1. One-on-one access to our instructors
  2. Free access to the online self-paced learning version of the course
  3. 2.5 hour live sessions for 3 days a week (Tuesday-Thursday) over a 3 week period
    1. This gives you time to review concepts before the next class
    2. Or for you to dive deeper into concepts that are covered in the self-paced online course
  4. Recordings of each session
  5. Classes start at 11am New York time, so are accessible to most people in the Americas, Africa, and Europe
  6. A chance to grow your network!

 

Overview

Build a project finance model from scratch using an infrastructure project case study

Course Outcome

Best practice project finance modeling

Project finance concepts and operations

Optimizing a model to satisfy investors – do a deal!

Professional presentation of outputs and 3-way statements

Course Previews

What is Project Finance

Requirements of DSRA

DSCR Sculpting

OUR BLENDED LEARNING COMBINING IN-CLASS AND ONLINE MATERIAL ENSURES WE TEACH MORE AND YOU LEARN MORE. 5 DAYS OF MATERIAL IS CONDENSED INTO 3 DAYS + ONLINE CONTENT.

Course name More Info Location Start Date Cost Register
Infrastructure & Project Finance Modeling More Info Self Paced Available July 2020 USD 650 Register
Infrastructure & Project Finance Modeling More Info Live Streaming 25 Aug 2020 USD 3,200 Register
Infrastructure & Project Finance Modeling More Info Live Streaming 20 Oct 2020 USD 3,200 Register

Contact us for on-site or on-campus pricing and options.

The cost of the online course will be credited to you if you join a public session within 12 months of purchase.

Discounts provided off the full course prices.

  • Students and non-profits are eligible for a discount of 50% (no other discounts may be added to this).  Online course price for students and non profits is $400 and interactive online sessions $1,600.
  • Other discounts
    • Group booking of 3 or more people – 15%  Price per person for online group bookings is $680 and  interactive online sessions $2,720
    • Early bird ( interactive online sessions only ) if book 8 weeks before the course – 10%. Price per person $2,880.
  • 12 months access to our online material, including concept videos with transcriptions, lecture slides, downloadable spreadsheet examples.
  • A complete step-by-step model walk-through, and access to discussion forums for ongoing questions’.
  • Subscription can be extended annually post the first 12 months for $100 per annum.
  • Lunch, tea & coffee at the venue (public session participants only).
  • Membership to the Pivotal180 alumni network.
  • Course completion certificate.

Due to the large volume of content available, the course is suitable for all-levels – there is something for everyone.

  • Analysts, associates & vice presidents at banks, funds, investors, developers, and operating entities looking to standardize approaches to modeling or solve new problems
  • More senior participants changing careers or looking to up their skill-set
  • Students wishing to enter the project finance sector or about to start new roles – get ahead of your competition now
Section Overview
Pre-course material
  • Course requirements and overview
  • Excel functions required
  • Shortcuts, named ranges, and data validation
  • Best practice principles
  • Best practice – flags and accounts
  • Impact of leverage on a project finance deal
Project finance introduction
  • Introduction to project finance
  • Typical investment structures
  • Tax and legal implications
  • Overall timeline and cashflow relationships
  • Major contracts and risk vs reward
  • Roles of different parties in the deal
Project finance term loans
  • Impact of leverage on a deal
  • Types of lenders and their mindset
  • Appropriate discount rates and interest repayments
  • Principal repayment options
  • Debt service cover ratio (DSCR)
  • Sculpting and sizing debt
  • Cash sweeps
  • Loan life cover ratio (LLCR)
  • Other debt ratios used for going-concerns
  • Understanding a Facility Agreement
Cashflow Drivers
  • Availability payments
  • Lifecycle costs
  • Revenue forecasting for patronage risk projects
  • Typical costs for infrastructure projects
  • Inflation calculations
  • Discussion of risk profiles of infrastructure assets, including:
    • Airports
    • Ports
    • Rail
    • Roads
    • Social infrastructure
  • Major maintenance reserve accounts
  • Understanding:
    • Project Agreements
    • Concession Agreements
    • O&M Agreements
Waterfall and cashflow summary
  • Typical waterfall structure vs cashflow statement
  • Accounting vs cash issues
  • Global differences in calculating the waterfall
  • Accounts required and the role of the administrative agent
  • Develop separate cashflow forecasts for debt and equity analysis
  • Develop upside and downside scenarios and sensitivities with data tables
Debt service reserve account (DSRA)
  • Requirement of (and implementation of) a DSRA
  • Impact of the DSRA on debt ratios
  • The debt service facility as an alternative
  • Develop model checks to ensure compliance with loan documents
Construction phase
  • EPC contract overview
  • Completion testing required and holdback payments
  • Value added tax challenges and solutions
  • Sources and uses
  • Model construction costs and understand funding challenge
  • Calculate total funding required
  • Discuss alternative drawdown orders
Depreciation and tax
  • Straight line, reducing balance, and MACRS depreciation
  • Model from EBITDA to EBT
  • Thin capitalization constraints on tax deductibility
  • Tax losses carried forward
  • State and local taxes
  • What happens when tax is ahead of CADS
  • International tax considerations (i.e. WHT, tax treaties)
  • Complete post tax valuations
Returns
  • Returns required for lenders, equity, and developers
  • Cap rate compression and the value in selling your project, calculating terminal values
  • Holdco debt and adding subordinated debt to increase returns (and risk)
  • Valuation comparables
Core Outputs
  • Comparison of accounting and tax depreciation
  • Developing an income statement and balance sheet
  • Converting quarterly calculations to annual outputs
  • Calculating working capital
  • Add deferred taxes to your model
  • Outputs required for an investment decision
Modeling quality checks
  • Adding model checks
  • How to review a model

 

Optimizing a deal model
  • Solve the price required to achieve a hurdle rate
  • Size the debt required in operations and construction
  • Introduction to VBA for project finance
  • Running scenarios with VBA
  • Simplifying alternatives to avoid VBA
  • Summary of core risks with analysis

Pre-requisites

Basic knowledge of Excel only

Equipment Required

Area Items Needed
Online Course

Computer, 2 screens preferable, Microsoft Excel

Public Session

Laptop & Power cord

Public courses run from 9am – 5.30pm at a location to be confirmed  post registration

interactive online sessions commence at 11am New York time

Range Amount
>4 weeks before the course Full Refund
1-4 weeks before the course 50% Refund
<1 week before the course No Refund

Get in touch to discuss our training or advisory services