DECISION LAB

Project Finance

Interactive project finance modeling tools. Build project models, structure debt, allocate risks, and analyze waterfall distributions.

8 Tools Interactive

Vol II Ch 18 Source

8 Exercises BUILD

SPV Structure

Ring-fenced entity

Risk Allocation

Contractual mitigation

Debt Sculpting

Cash flow matching

DSCR / LLCR

Coverage ratios

TYPICAL CASH FLOW WATERFALL

Revenue → Opex → Senior Debt → DSRA → Junior Debt → Equity

Interactive Tools

Project Model Builder

Build integrated project finance models with construction, operations, and financing.

Construction timing
Operating assumptions
Financing structure

Debt Sculpting Tool

Sculpt debt service to match projected cash flows with target coverage ratios.

Target DSCR input
Amortization schedules
Balloon optimization

Waterfall Calculator

Model cash flow waterfalls with reserves, sweeps, and distribution tests.

Reserve accounts
Cash sweep logic
Distribution lock-ups

Coverage Ratio Tracker

Monitor DSCR, LLCR, and PLCR across the project life cycle.

Period-by-period DSCR
Average/min DSCR
Loan life metrics

Scenario Stress Tester

Stress test project returns under construction delay, cost overrun, and demand scenarios.

Construction risk
Demand/price risk
Interest rate risk

Risk Allocation Matrix

Map project risks to contractual parties with mitigation strategies.

Risk identification
Party assignment
Mitigation measures

BUILD Exercises

BUILD 1

Basic Project Model

Build a simplified project model with construction and operations phases

FOUNDATIONAL

BUILD 2

DSCR-Driven Debt Sizing

Size senior debt to maintain target coverage ratio

INTERMEDIATE

BUILD 3

Cash Waterfall Model

Implement full waterfall with reserves and distribution tests

INTERMEDIATE

BUILD 4

Full Project Finance Model

Build integrated model with multiple debt tranches and equity returns

ADVANCED