PROJECT FINANCE MODELLING

Transcription

1 We can deliver this course in-house: Your company, your location, your needs Contact Jeff Hearn: +44 (0) PROJECT FINANCE MODELLING Learn how to build Excel models to help identify and overcome project finance risks London Dates: February 2016 & July 2016 COURSE LEADER: Richard Capps Attend this three-day intensive training course, packed with workshops and learn how to: Design models to maximise flexibility and reliability Quantify cashflow volatility of identified project risk Overcome the most complex aspects of building a reliable model, including currency Model mismatches, debt amortisation, depreciation, control account waterfall, cost structures and learn how to shift time scales easily Facilitate the control of the model for scenarios, sensitivities and break- even analysis Use practical tips on layout and style in building a user-friendly model

2 PROJECT FINANCE MODELLING The complexity of today s project finance transactions requires a high level of expertise in building financial models which are reliable and flexible to accommodate the changing requirements occurring during the life of a project. This course will identify and offer solutions to specific problems associated with the building of project finance models. It will teach you all the available techniques and how to apply them practically through the use of Excel. You will be working on PCs and extensive practical exercises will be used to illustrate all the principles covered. Course Level Delegates must be familiar with the basic principles of project finance and, as the course material will include extensive use of Excel, it is essential that delegates are at ease with spreadsheet modelling. If you require any further information about the course programme and/or the suitability of this course for you, please contact us. This course is specifically designed to assist those who use or develop models in the context of SPV financed limited recourse projects. Those who are involved in a broader context should consider IFF s course Financial Modelling in Excel. Course Leader: Richard Capps Richard Capps brings to the task of modelling a rich blend of business experience. Shortly after qualifying as a barrister in London, he switched to banking and for 5 years worked in corporate lending in New York and London. He then moved into merchant banking in Hong Kong and in Australia and for 6 years was engaged in mergers and acquisitions and corporate restructurings. Following this period on the banking side, he served for another 6 years as the CFO for a large corporate group with a dual head office in the USA and Australia. Having honed his modelling expertise over the past 20 years, as an independent consultant he is now commissioned to build financial models for a range of clients. Recent commissions have been for a petrochemicals complex, a fleet of LNG vessels, a power generation restructuring, a resorts project, a casino, a coal mine, a retailing organisation and food processing company. He also has extensive experience of delivering training courses in project finance, corporate finance, loan documentation as well as financial modelling. WHY CHOOSE IFF AS YOUR TRAINING PROVIDER? Track Record we have over 20 years experience of providing training to the banking, finance and energy sectors Relevance training courses are designed for small delegate groups which ensures you maximise the time and contact with your course director Innovation our courses are continually reviewed so you can be sure they are focusing on the most current issues Knowledge all of our trainers are highly experienced and are world leading subject matter experts in the field they teach so you can be confident you are learning from the very best Small class sizes to aid knowledge acquisition and increase your personal interaction with the trainer Value our philosophy has always been to provide a practical training experience with skills that can be used to gain a tangible return on your investment Accreditation we are accredited by the British Accreditation Council (BAC) IN-COMPANY TRAINING SOLUTIONS SAVE MONEY IMPROVE PEFORMANCE REDUCE RISK If you have four or more people to train, our in-company courses can be delivered for you anywhere in the world and are the perfect solution for you. Many organisations have realised that IFF in-company courses offer so much more than conventional courses. Here s why: We focus on providing our clients with training solutions that are specifically designed for them in order to help them address their key business challenges IFF programmes are designed by practitioners for practitioners. We equip our clients with the practical skills and knowledge they need to succeed Our international faculty of trainers are some of the world s leading experts in their chosen field. We only use the best minds in the business We ve been supporting our clients for over 20 years; you can be sure that, as such, our track record makes us the lowest risk training partner you could find By focusing on the business issues behind the training need, we can ensure that the content and focus are targeted 100% on the needs of the business Quality is critical to our success. Our reputation has been built over 20 years by delivering programmes of the highest standard. We will never compromise on our desire to ensure that our courses surpass the expectations of our clients, not meet them. IFF is the chosen in-company training provider for some of the world s leading financial institutions, so rest assured you ll be in good company. We ll also meet with you anywhere around the globe. Only by understanding our clients business issues can we hope to add substantial value. That s why we work with our clients face to face all over the world. If you would like one of our consultants to meet with you to talk about your needs in more detail or if you would simply like more information as to how you ll benefit from our in-company programmes, please contact Jeff Hearn (Managing Director) on +44 (0) or jhearn@iirltd.co.uk

3 Your comprehensive course agenda Project Finance Modelling Model Design The layout of the model Designing the analysis worksheet Planning the functionality of the model Organisation of model inputs The logic flow throughout the model The status worksheet, debugging the model The log, maintaining model discipline Best Practice Model efficiency The importance of consistent timelines Consistent formulae across columns Hard coding in formulae Which circular references are permissible and which are not Best practice for macros Financing The cashflow profile of different project financing sectors Modelling annuity-based amortisation Modelling straightline amortisation with dynamic capability Modelling cash sweeps The Role of the Model Within Project Finance Limitation of recourse Risk and the allocations of risk Free cash flow Project dynamics The three stage analytical process risk identification quantification of risk volatility structuring risk protection The Different Types of Financial Modelling Valuation models Transaction structuring models Statistical probability modelling Data manipulation Pre-Completion Review of the construction stage of the project liquidated damages performance bonds completion guarantees interest during construction multiple tranche drawdowns Building the construction phase worksheet IRR and NPV The defects of the IRR and NPV functions in excel Comparing and contrasting IRR, MIRR, XIRR and XMIRR Which method of calculation should be used in project finance models The importance of semi-annual timelines for structured financings Illustration of implementations Particular Modelling Challenges Some of these will be implemented as practical exercises and some as illustrations with self-tuition files for implementation after the course. The modelling of currency exposures The modelling of depreciation Implementation of cash sweeps Modelling of the cashflow waterfall Implementing the Loan Life Cover Ratio Different methods of implementing scenario analysis Implementing sensitivity analysis Walk-Through of a Project Finance Model The Revenue Worksheet modelling offtake agreements volumes and prices modelling concession terms elasticity of demand calculations The Operating Costs Worksheet explanation of the origins of cashflow volatility determining the cost drivers modelling the cost profiles estimating the changes in structure when the scenarios are altered differential escalation of costs The Tax Worksheet the generic issues pertaining to tax (tax is jurisdictionally specific) assessable income vs. accounting income Accounting Reconciliations Worksheet terms of trade accounting depreciation using VDB function Financing Worksheet different types of amortisation Financial Statements Worksheet Cashflow Waterfall Worksheet explanation of the objective dealing with the what ifs the lockup ratios default ratios LLCR and ADSCR Analysis Worksheet scenario analysis break-even analysis sensitivity analysis Develop an analysis worksheet to implement sensitivity and scenario analysis Reviewing Models Procedures upon receiving a model supplied by others identifying the model's architecture tracing the logic flow the use of audit software DISCUSSIO N SESSIO N Implementing model review Question and answer discussion session

4 Watch the video here: /INCVID In-Company Training The International Faculty of Finance has been the world leader in specialist in-company training for over 20 years. We excel at designing and providing customised training solutions which meet your organisational goals, objectives and business challenges, whilst delivering an outstanding return on investment. Our international faculty of expert trainers will create the perfect programme for your needs. Our in-company courses can also save you up to 40% compared to traditional public courses, making big savings on travel costs and reduced time away from the desk. IFF delivers in-company training to clients all over the world, at all levels within an organisation across every sector of banking and finance. This is what makes us so successful in meeting the diverse needs of our clients. Not only does our reputation for quality make us different from other training organisations, but we have a passion to ensure that our courses surpass the expectations of our clients, not just meet them. Why choose IFF In-company Training? Cost Efficient Customised Content Convenient Specially Selected Trainer Free Pre-course Assessment Consistent Quality Post Course Evaluation Dedicated Account Manager Dedicated Logistics Manager Tailored Course Materials Interactive & Practical Case Studies Tailored to Specific Regions & Sectors Rest assured - that when choosing IFF not only are you making a safe decision financially and professionally we guarantee the results you need to achieve from training. When it comes to improving the skills, knowledge and performance of your team, department or organisation IFF in-company training is the ultimate solution. Contact us to discuss further: +44 (0) jhearn@iirltd.co.uk Tel: +44 (0) cs@iff-training.com 4

5 PK=RK1335 PROJECT FINANCE MODELLING 5ways to register... 1 Tel: +44 (0) Fax: +44 (0) cs@iff-training.com 4 Web: 5 Mail: Customer Service Manager International Faculty of Finance 4th Floor, Maple House 149 Tottenham Court Road London W1T 7AD Your VIP code is on the address label. If no label, please quote A X IFF Training is accredited by the British Accreditation Council (BAC). The British Accreditation Council is recognised internationally and provides the clearest mark of educational quality and excellence. Accreditation by BAC is recognised by the UK Border Agency so the fact that IFF is BAC-accredited should help with your visa application. If you would like us to contact you with a registration form via , please tick which date you wish to register for, providing your contact details below in BLOCK CAPITALS. You can send this to us, using the contact details above. Course: 3 day IFF Project Finance Modelling Course Venue: Central London February 2016 (FLF3667) July 2016 (FLF3666) Full Name: Address: Phone Number: Administration Details: Cost: Including documentation, lunch & refreshments your investment in this course is VAT= The VAT is subject to change and may differ from the advertised rate. The amount you are charged will be determined when your invoice is raised. (Our VAT number is: ) Register by Register after 30 October October 2015 Course fee % % = = SAVE 200 PLACES CANNOT BE GUARANTEED UNTIL FULL PAYMENT HAS BEEN RECEIVED. Methods of Payment (Our VAT no is ): By Bank Transfer, Cheque or Credit Card *if you would like to pay by credit card, please register via our secure payments website at, otherwise details of alternative ways to pay will be on the invoice you receive after registration. To ensure we provide the highest level of security for your credit card details we are unable to accept such payments via or fax which ensures that these details are never stored on our network. Save money with in-house training SAVE up to 40% and improve performance with our cost-effective tailored in-house courses Contact Jeff Hearn for more details: +44 (0) jhearn@iirltd.co.uk What happens if I have to cancel? The following charges will apply for written notice received: 30 + days before the course: 10%, days before the course: 50%, 1 15 days before the course: 100% In the unfortunate event that a course is cancelled, IFF Ltd are not liable for any costs incurred by participants in connection with the course. Transfers The following charges will apply for written notice received: 30 + days before the course: free of charge; days before the course: 10%, 1 15 days before the course: 100% Data Protection The personal information shown on this form, and/or provided by you, will be held on a database and may be shared with other companies in the Informa Group in the UK and internationally. If you do not wish your details to be available to other companies in the Informa Group please contact the Database Manager at the above address, Tel +44 (0) , Fax +44 (0) or integrity@iirltd.co.uk. Occasionally your details may be obtained from, or made available to, external companies who wish to communicate with you offers related to your business activities. If you do not wish to receive these offers, please tick the box. Incorrect Mailing If you are receiving multiple mailings or you would like us to change any details or remove your name from our database, please contact the Database Manager at the above address, Tel +44 (0) , Fax +44 (0) or integrity@iirltd.co.uk quoting the reference number printed on the mailing label. International Faculty of Finance, 4th Floor, Maple House 149 Tottenham Court Road, London W1T 7AD Paper sourced from sustainable forests ElementalChlorine Free (ECF)