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It seems there is a missing video, as this is lesson 2. I cannot find lesson 1

Excellent video, very well explained and informative. Greetings from Italy 🇮🇹

Frankly speaking, your way of speaking is very boring and very transactional. I couldn't understand anything in this video.

we model our tax equity cash flows pre debt to size the debt, then flip the te and debt flows in the water fall.

How does the flip occur? In the partnership agreement?

Blogger, please tell me how to join your group.

How does one purchase these PowerPoint slides?

Videos are indeed helpful, but some of the material is always lost by adding video cards with 15-20 seconds of content still showing.

1:55 sources of equity: 1. financial: look for financial returns, diversification, and tax benefits (as google has a lot tax payable) 2. industrial: expertise. i.e. energy company 3. government: welfares benefits. 2:30 sources of debt: 1. commercial banks: largest and most experienced. 2. bonds: subject to market sentiment: rating as this is one of the cost. 3. export credit agencies: invest in emerging markets. political assurance. export financing. 4. multilateral financial institutions: development bank etc. preferred crediter status can support exchange currency and political assurance. 4:05 loan types: 1. construction loans: covering the construction cost of the project 2. term loan: take-out or refinance the construction loan. this is made upon project completion. as construction period is the riskiest period of the project finance, they take the most restrictive covenants and highest interest rate. 3. RCF, revolving credit facilities: subordinated debt to cover unexpected short-term cash flow problem. 4:50 commercial bank loans: syndication or loan sales. in syndication: each bank will have a direct contract with borrower in loan sale: only lead bank has the contract

1:00 when the financing is closed and construction stage starts. 1:10 EPC contractor designs and project procures necessary. 1:35 O&M contractor takes over. 1:45 the project enters the decommission stage. 2:50 construction stage with pre-completion risks include: 1. delay risk: lenders cannot get paid accordingly in debt repayment schedule. the buyer cannot get the agreed project output. the suppliers cannot sell the product as per agreed schedule. (EPC contractor will pay the penalties each day it violates.) 4:00 2. completion risk: completion guarantees by EPC contractor. (guarantee by a bank) 3. performance risk: EPC contractor. the project has to perform as least as good as specified in the EPC contract. otherwise, it cannot produce the planned output and planned cash flow. 3:10 project finance is a highly structured transaction.each small mistake may generate a million loss. 5:10 post-completion risks: operations: 1. revenue: take or pay contract with off-taker 2. supply: put or pay contracts with supplier 3. operation: performance penalties to O&M contractor 8:45 post-completion risks: macroeconomic & political risks 1. inflation: price escalation pass through to buyer 2. exchange rate: hedging, government conpensation 3. change of law expropriation: government guarantee, EXIM agency insurance.

0:40 SPV, special purpose vehicle: is being ring-fenced. i.e. own bank account, own board of directors, own financial report, own accounting. 0:55 SPV will raise the debt financing from the lender and equity financing from the sponsor. the lender will take the SPV asset as security and this may include equipment, processing plant, and mining licenses. 1:10 once the mining project is operational and generating cash flow, it will repay the interest and principal to the lender. and the remaining cash flow will go to the sponsor in the form of dividends. if the generated cash flow is not sufficient, then the lender cannot go after the SPV. this is non-recourse. 2:00 factors of project finance in mining company 1. project economics: attractive projects with high project IRR, internal rate of return 2. long mine life: long reserve tail after debt repayment reduces project's risk. this can be a cushion against deficient debt repayment. 2:50 how liquid the commodity is the mine will product (precious and base metals vs. rare earth metals) the former can be traded easily. 3:50 availability of offtake and hedging agreements. 4:00 project riskiness and availability of risk mitigation mechanism will drive lender's decision to lend. 4:25 limited recourse model: - often, lending is done on limited recourse basis to mining companies. - lenders require the sponsor to provide limited guaranties. 1. guarantee loan repayment if the contruction completion is never achieved. 2. provide performance guarantees, if performance is worse than agreed. 3. provide equity support to cover cost overrun 超過 4. a full recourse to the sponsor during the construction phase. 5:50 Why SPV? 1. ring fencing provides limited recourse for project sponsor 2. ring fencing provides limited liability for project sponsor.

7:00 debt size = PV, present value of debt service 8:45 interest rate determines the debt size for the project. the lower the risk, the lower the DSCR interest rate. and higher the debt size. tenor also determines the debt size. the longer the tenor, the higher the debt size is.

0:35 with installed capacity of 440 MW, megawatt which was built under BOO, Build Own Operate concession agreement. power purchase agreement, PPA life: 25 years. Total Project Cost: over 800 million attracted debt financing of 510 million on non-recourse basis. (which is 75%) construction date: December 1996 operations date: January 2000 1:10 philipines power plant development landscape: 4:50 PPA offtaker: structure: take or pay payment structure: capacity, O&M, energy fees, payment indexation: US dollar annual revenue 1st year: 6:25 EPCM contract Contractor: Contract structure: Guarantees: completion date & performance. 6:50 O&M contract, operation & management contract: 7:30 coal supply contract: coal suppliers: structure: put or pay guarantees: financial guarantees. 8:20 currency and country risk: exchange rate: PPA denominated in US$ country risk: EXIM Bank insurance political & economic landscape: improving debt rating: upgrading 9:35 turn-key EPC project.

0:20 capex is financed through term loan. as a construction debt. equity is from project sponsor. 1:15 RCF in project finance and corporate finance is different. in corporate finance it is senior debt, while in project finance, this is based on the loan agreement. this is stand-by facility. and for general operating purpose. this would be called upon through either emergency capital investment or significant fluctuation in working capital 1:40 make project company, SPV, bankruptcy-remote. for a project that also issues bonds to public market, it may also require credit rating.

1:45 for an equity investor cash inflows: stock dividends and redemptions. cash outflows: investment 2:25 CAPM is for listed company or stock exchanges. 2:40 Risk-free rate: rate of the long-term treasury yield 3:15 hurdle rate: the minimum rate of return of a project or investment. they are derived from industry rule of thumb. extensively used in private equity and infrastructure investment. 3:45 NPV = Cash flow* Discount factor. 4:40 IRR is also used extensively in project finance and private equity. IRR is a discount rate at which net present value of the project is zero: IRR 是專案淨現值為零時的折現率。

Instead of considering 100 as opening balance for all years, each year's closing Balance should be calculated by deducting interest of each year calculated on respective year's opening balance.. this would be more prudent..

How can we get this sheet ?

Sir can i get a certificate after complete this course or not

Thank you. C'est top

@financialmodeling1899 Hello there I would like to extend an invitation for a strategic discussion focused on optimizing your Udemy course to effectively attract and enroll a larger cohort of students, positive reviews with real and active student I don't know if might be available for a brief call @YAGI TEAM W.W

Hi, pls advice how can I get fully details excel module for each step...thanks for info.

A very high quality content, thank you very much! Always disappointed on a low volume of likes and views on such videos.

In the end you just show that you change between scenario 1 and 2. I don't see you configuring the financing methods, so I'm wondering about the scope of this video.

great excellent summary

After attending your online classes do we get certificates f completion?

Question: is this only possible through tax credits from renewable energy?

Very clear Thanks

I still have a hard time understanding what a revolver is

what is sovereign guarantee?

Isn’t EPCM contract is similar to Designbuild contract where the employer employes consultant to monitor the contractor activities.

Is project finance different from finance modelling?

Thank you so much for this video, found it very helpful! Would you please recommend a book that elaborate about renewable PPA structuring and pricing? Thanks in advance

Awesome!

can you send me your excel table?

hi teacher, IRR (PV of dividends is 49 so project's NPV İS -

Wait why does the balance sheet have to balance again?

Dear Friends, I have a question: Will a company achieve financial synergies when it creates many companies or buys many other companies? Thank you

Hello, 4:07 minutes into the video you said something that i need more clarity on; can lenders go after the assets of the SPV in case it fails to service the debts i.e., can they sell of the SPV assets to recover the debt?

yield based flip.

What about project closure or failure settlement structure. Is it like debt> equity> company or something else?

I have a doubt , please solve this. I understand the circularity of debt sizing, but for CFADS, we start with revenues for which we require tariff charges for a 4 part tariff structure (suppose). Now for the capital cost recovery charge rate we need to goal seek the rate such that the equity IRR meets the target IRR. So essentially we need CFADS for arriving at the capital recovery charge rate which in turn is again determing the CFADS and hence the circularity. Also this CFADS is being used in the debt sizing equation. So which to size first debt or tariff?

This was great!

If equity returns are generally low, then wouldn't the interest rate (especially in this rising rate environment) on the loan eat away into that low return and make the project uneconomical?

Hi, This is really helpful for quick understanding of Probability of Generation. Thank you

Your class is great. Any chance you can share the Excel?

😊 'promosm'

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Thank you ! Your videos were really helpful !

😄 'Promo sm'

Excellent presentation