Financial Modelling Example Project Finance Financial Model
Project Finance Financial Model
Project finance is the funding of a long term infrastructure project. The cash flow from the project is used to repay the debt and equity. A project finance finance model is used to evaluate the economic viability of the project.
Generally, the main financial model outputs are:
- The cash flow waterfall
- Sources and uses of funds
- Ratios (DSCR,LLCR,PLCR)
- Sensitivity Analysis
- Financial Statements
The model will generally be broken down into development, construction and operations phases. These models can become complex as there is some inherent circularity in the calculations, for example calculating the interest during construction (IDC).
In order to model the future years, the model will use a number of assumptions or key forecast drivers such as:
- macro - such as inflation, tax rates.
- construction - EPC costs, intangible costs and funding costs.
- operations - output forecasts and financing costs.
The model will generally include a facility to run different scenarios based on different construction and operating assumptions.
With our experience in developing complex project finance financial models in Excel, our London financial modelling consultancy is a responsive and competitive solution to your financial modelling needs.
We provide quality real world financial modelling solutions, without the complex engagement process or overheads of a Big 4 and are a great alternative to hiring an interim financial modeller.
Contact us
to see how we can help your organisation develop a robust and reliable project finance financial model.
