Build the cashflow statement from the ground up.
Compute development expenditure, revenues, expenses, income tax, debt sizing, yields-to-maturity, profit payments, dividends, reserve accounts and finance service coverage ratios. Automate principal repayment calculation using Visual Basic for Applications (VBA).
NVFM321 Financial Modelling Essentials
This is part one of the hands-on tutorial on financial modelling for project finance using Microsoft Excel.
Describe project finance + Compare project finance with financing for corporates and assets + Explain the importance of financial modelling to project finance + Outline the financial modelling results to greenlight a project finance opportunity
Outline the assumptions page – construction costs, revenues, operating and maintenance expenses, income tax and financing + Outline the cashflows page – flags, cashflows, reserve accounts, financial ratios, sukuk, tax, sizing and dividends
Develop construction and operating period flags + Input data and perform step-by-step computations for revenues, capex, opex and tax + Explain debt sizing process + Describe finance service reserve account and perform computations
Explain purpose and types of finance service coverage ratio + Contrast finance service coverage ratio as financial covenant and for rating + Perform the computations for finance service coverage ratio
Differentiate repayment schedule for term facility and sukuk + Create automated repayment schedule with Visual Basic for Applications (VBA) + Explain average life and average yield + Input distribution finance service coverage ratio and compute dividends
Identify the results of the base case financial model + Input stress assumptions for construction costs, revenues and opex + Compare the results of the stress case financial model to the base case financial model
