Project Finance Modeling
Large projects such as infrastructure, energy, utilities and big property developments are often funded by the project's own future cash flow. We build the detailed models that lenders and investors expect to see.
Who it is for
- Sponsors and developers preparing a funding package
- Companies bidding for a concession or PPP project
- Investors reviewing a project's returns and risks
- Lenders who want an independent check of a model
What we do
- Build the model across construction and operation
- Size the debt and test repayment profiles, including sculpted repayments
- Calculate DSCR, LLCR and the returns to equity
- Include interest during construction, reserve accounts, tax and depreciation
- Run downside cases such as delay, cost overrun and lower tariffs
- Review and audit existing project models
What you get
- A project finance model built to the structure lenders commonly review
- A summary of returns and debt metrics
- A base case and downside cases
- An assumptions book
- A model guide so your team can use it
How it works
- Intro callWe talk through what you are trying to achieve, what information exists, and whether we are the right fit. This call is free.
- Agree the structureWe confirm how the project is set up, funded and paid.
- BuildWe build the model and check it carefully.
- TestWe run downside cases and show what breaks and when.
- SupportWe help you explain the model to lenders and investors.
What we need from you
- Project description, timetable and budget
- Revenue arrangements, such as tariffs or an offtake agreement
- Proposed funding terms, if known
Please note. We build and review models and advise on the numbers. We do not arrange or provide financing, and legal and technical advice come from your other advisers.
Questions
What is a project finance model?
A detailed spreadsheet that shows how a project is built, paid for and repaid over many years. It tests whether the cash flow can repay the debt and what return owners earn.
How is it different from a normal company model?
A project usually has one purpose and a fixed life, and lenders look closely at coverage ratios and repayment schedules. The model has to follow the loan terms and the project contracts.
Tell us what you are working on.
Send a short message. We reply, agree what you need, and set a time to talk. Intro calls are free and carry no obligation.