Financial Modelling Essentials for Project Finance 6 February 2020 (Kota Kinabalu, Sabah)

Section 1: Describe the Development of Long Term Assets
Describe types of long term assets and their purposes + Compare fundraising channels including equity, banking, money and capital markets + Explain the advantages of project finance in the development of infrastructure and capital-intensive projects + Explain the relationship between the development of long term assets and economic growth

Section 2: Explain the Role of Project Sukuk (Bonds)
Explain the structure of financial intermediaries in Malaysia and in select other countries + Differentiate project finance in Malaysia and in those countries + Compare and contrast a bank’s term facility vs sukuk (bonds) issued to investors + Justify a proposal to issue sukuk (bonds) for a project financing exercise

Section 3: Set Up the Financial Model
Design layout of the assumptions and cashflows pages + Develop construction and operating period flags + Outline the source and significance of key assumptions + Perform step-by-step computations for revenues, capital expenditure, operating expense and income tax + Explain process of sizing debt and equity + Describe the finance service reserve account and sources of its assumptions + Perform the finance service reserve account computations

Section 4: Explain the Finance Service Coverage Ratio
Explain finance service coverage ratio as determining factor for sizing debt + Explain types of finance service coverage ratio + Contrast finance service coverage ratio as financial covenant and as assumption + Perform the computations for finance service coverage ratio

Section 5: Calculate the Financing Repayment Schedule and Shareholders’ Returns
Differentiate financing repayment schedule for term facility and sukuk + Explain sukuk (bonds) tranches and series, average life and average yield + Generate Visual Basic for Applications (VBA) to automate financing repayment schedule + Explain the distribution finance service coverage ratio + Perform computation of dividend distribution and shareholders’ returns

Section 6: Report the Results
Construct a dual y-axes graph plotting issuance and finance service amounts against finance service coverage ratios to visualise the results of the financial model + Design a separate page to highlight the key results of the cashflows and finance service coverage ratios + Perform a transfer of the graph and cashflows to a Powerpoint slide and a Word page respectively and proper resizing to fit