Practice debt sizing and debt sculpting with me:

In this video I show you different scenarios with debt sizing and debt sculpting.
- I start with the example of a structure in which debt is sized based on a maximum debt to capital ratio and with annuity debt repayment. This is resulting in a high DSCR ratios and therefore the possibility to either raise more debt or sculpt the debt.
- Then I switch to debt sizing using a target DSCR of 1.3x. This will increase the debt amount up to 90% of total project cost which might be too aggressive and risky and not acceptable by lenders.
- Next is to size the debt based on a min of debt resulting from max debt to capital ratio and debt sized based on CFADS and min DSCR. Two tranches of debt are considered in the analysis and are sculpted to maximize equity IRR and satisfy min DSCR required by lenders.
- This example also shows that including the debt sizing method using CFADS will result in a number of circularities in the model. If you are using the copy and paste method to get rid of the circular reference, then it will slow down the model and also you won't be able to use goal seek function.
Just note that in this video, I do not explain how to build the debt sizing mechanics in the model and my aim here is to encourage you to think about the upside of debt sculpting.
If you want to learn more about debt sizing and debt sculpting, I encourage you to check Professor Edward Bodmer's website and go through his videos on this topic:
/ @edwardbodmer
edbodmer.com/debt-sizing/
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courses.finexmod.com/
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Who is the Financial Model Detective?
Hedieh has made financial modelling her profession and passion. She has worked since 2008 as the financial modeler and was the lead modeler for several Mega green field projects in Africa.
She is the author of a book on project finance model audit called:" Financial Model Detective"
www.amazon.com/Financial-Mode...

[@sanazdaniellefotoohi]

One day I will learn debt sculpting and I email Heideh and tell her I finally did it! Until then, I keep watching this video over and over to understand debt sculpting.

[@FinancialModelDetective]

Hi Sanaz, thanks for your nice comment. I am also learning and will post more on this so that we learn together

[@maxdesolminihac2365]

Hedieh Please Can you kindly tell me the exact name of the model spreadsheet containig debt sizing and debt sculpting you use in our you tube course and the web page name where can I find your excelent model . Is there a place way where I can buy it ? Thanks again . Max Errazuriz

[@user-ts7uf7cr8o]

Hi, could you recommend project finance modeling video for beginners? I only have experience in LBo and DCF.

[@FinancialModelDetective]

Start here: th-cam.com/video/yTd0MymsibM/w-d-xo.htmlsi=wGAdYvwLpMHWZB50

[@maxdesolminihac2365]

Hi Thanks for your excellent videos . I am interesteed in your excel financial model specifically for debt sizing and debt sculpting . How can I get it ? Thankis Max Errazuriz

[@FinancialModelDetective]

Thanks Max. Thanks for your comment. You can get the spreadsheet from my Eloquens channel but also check professor Edward Bodmer’s website and videos on debt sizing and sculpting at: edbodmer.com

[@maxdesolminihac2365]

@@FinancialModelDetective Thanks for your promt answer. Can you kindly tell me the exact name of the model spreadsheet containig debt sizing and debt sculpting and the intenet address of the page where I can find your model . Because there are many diffrente spread sheets in eqloquence . Thanks again . Max Errazuriz

[@maxdesolminihac2365]

Hedieh Please Can you kindly tell me the exact name of the model spreadsheet containig debt sizing and debt sculpting and the web page name where can I find your excelnet model . Is there a place where I can buy it ? Thanks again . Max Errazuriz

[@FinancialModelDetective]

Hi Max, check this website: edbodmer.com/debt-sizing/

[@FinancialModelDetective]

You can complete project finance models there with debt sizing and sculpting

[@FinancialModelDetective]

Also check my Eloquens channel: www.eloquens.com/company/hedieh

[@FinancialModelDetective]

I have templates and also complete project finance models for renewable projects : www.eloquens.com/company/hedieh

[@FinancialModelDetective]

If you still can not find your answer from the above let me know.