Debt sizing concept in project finance - financial modeling for renewable energy

This is a lesson from the upcoming financial modeling course "Project Finance Modeling for Renewable Energy"
Please reach out to us for special offers, if you are interested: [e-mail]
Click below link to check out our existing courses:
www.financialmodelonline.com/...
Project Finance Modelling course will teach you everything you need to know about financial modeling.
In The Project Finance Modeling course, we will model complex greenfield toll road project finance transactions from scratch in excel.
You will learn about:
- what is project finance;
- financial modeling of complex, real-life project finance transactions;
- how to sculpt debt to a target DSCR;
- how to create best practice macro’s to break circularities;
- how to model Debt Service Reserve Account and Maintenance Reserve Account;
- how to model Shareholder Loan, Revolver and Blended Equity IRR;
- building project finance models in excel that cover the entire life of the project;
- preparing trusted project finance models tailored to investors and financiers, with a focus on valuation and risk
This is the same comprehensive training used to prepare analysts and managers at top financial institutions and infrastructure funds.
FMO specializes in developing your financial modeling skills in project finance, investment banking, asset, and wealth management. While we are a young firm, the team has decades of experience of complex financial transaction modeling.

[@vinhnguyen3199]

thank you for this video, very interesting and contain everything I want to know

[@rush4050]

Awesome!

[@mila868]

Thank you, very useful!

[@financialmodeling1899]

Thanks for watching!

[@waraidzoprincekanyongo2589]

Thank you

[@financialmodeling1899]

You're welcome

[@BhromonBhomra]

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?

[@swetapatra]

thank you for this video. very well explained, however I couldn't follow how risk is factored in while we can see how increase/ decrease in interest rate, DSCR and tenure effect the debt size.
why is risk directly proportionate to interest rate, DSCR and tenure?

[@financialmodeling1899]

Hi, Risk would manifest itself in decrease of loan tenor, increase of DSCR or interest rates - therefore risk would decrease the loan size that the project can raise.

[@aliefrizky8974]

Hi, just wondering when is the renewable energy project financial modeling out ?

[@financialmodeling1899]

very soon, we are finalizing it, thanks!

[@natvlb8244]

I would be interested in the Telecom infra project financial modeling, any plans to do smth like that?

[@financialmodeling1899]

Hi Nataliya, we are not planning to release telecom, but we will do a project finance mining course.
In this course, we should how to model the debt based on multiple covenants, which are suitable for projects with inherent revenue risk such as a renewable or telecom, it is a different approach we have taken in the previous course.

[@natvlb8244]

@@financialmodeling1899 Modeling mining projects are super interesting, if you go up the value chain, not just stop at extraction. But I wonder how big a demand for those projects right now, given the current climate issues.