Effective project finance requires a deep understanding of financial structuring, risk assessment, and commercial modeling to ensure project feasibility and sustainability. The Project Finance and Commercial Modeling Course equips participants with the essential skills to analyze, structure, and model financial transactions for large-scale projects.

This course provides a practical, hands-on approach to financial modeling, covering key concepts such as project risk assessment, debt and equity structuring, cash flow forecasting, and sensitivity analysis. Participants will gain insights into industry best practices and real-world applications, enabling them to develop robust financial models that support informed decision-making.

This course delves into the core principles of project finance, focusing on the structuring of long-term investments, risk mitigation strategies, and the use of financial models to assess project viability. Participants will gain hands-on experience in building dynamic financial models that incorporate key elements such as revenue projections, cost structures, debt financing, equity contributions, and sensitivity analysis.

By the end of the course, participants will have the confidence and expertise to build sophisticated project finance models, evaluate investment opportunities, and make strategic financial decisions that drive successful project execution.

Duration:           5 days

Who should attend?

• Finance professionals and investment analysts
• Project managers and infrastructure developers
• Corporate finance and banking professionals
• Government and public sector officials involved in project funding
• Anyone interested in mastering financial modeling for large-scale projects

Course Objective:

By the end of the course, participants will be able to:

• Understand the fundamentals of project finance and its application across industries
• Build dynamic financial models for project evaluation and investment analysis
• Assess project risks and develop risk mitigation strategies
• Structure financial transactions, including debt and equity financing
• Apply commercial modeling techniques to optimize financial performance
• Build robust project finance models from the ground up
• Assess project viability using financial and commercial modeling techniques
• Structure and evaluate financing options for large-scale projects
• Conduct sensitivity and risk analysis to support decision-making
• Apply best practices in project finance and commercial structuring

Course Outline

Module 1: Introduction to Project Finance

• Understanding project finance vs. corporate finance
• Key characteristics and applications of project finance
• Role of stakeholders: sponsors, lenders, investors, and governments
• Overview of industry sectors (energy, infrastructure, real estate, etc.)

Module 2: Project Finance Structures and Risk Allocation

• Typical project finance structures (SPVs, PPPs, BOT, BOO, etc.)
• Risk identification and allocation among stakeholders
• Contractual frameworks: Power Purchase Agreements (PPA), Offtake Agreements, EPC & O&M Contracts

·         Case studies on successful project finance structures

Module 3: Financial Modeling Fundamentals

• Introduction to financial modeling techniques
• Key principles of building a robust financial model
• Spreadsheet best practices and model structuring
• Understanding financial statements and cash flow drivers

Module 4: Revenue and Cost Modeling

• Forecasting project revenues and demand estimation
• Operating and maintenance cost modeling
• Capital expenditure (CAPEX) and depreciation modeling
• Inflation, indexation, and cost escalation factors

Module 5: Debt and Equity Structuring in Project Finance

• Sources of project finance: equity, debt, mezzanine financing
• Debt repayment structures: amortizing, sculpted, bullet repayment
• Loan covenants, DSCR (Debt Service Coverage Ratio), LLCR (Loan Life Coverage Ratio)
• Understanding financing terms, interest rates, and repayment schedules

Module 6: Cash Flow Modeling and Financial Feasibility Analysis

• Building project cash flow models
• Free Cash Flow to Firm (FCFF) vs. Free Cash Flow to Equity (FCFE)
• Payback period, IRR (Internal Rate of Return), and NPV (Net Present Value) analysis
• Sensitivity and scenario analysis

Module 7: Risk Analysis and Mitigation Strategies

• Identifying financial, operational, and market risks
• Monte Carlo simulation and stress testing in financial models
• Hedging techniques (interest rate swaps, currency hedging, etc.)
• Credit risk assessment and mitigation

Module 8: Project Valuation and Investment Analysis

• Discounted Cash Flow (DCF) valuation techniques
• Terminal value estimation and valuation multiples
• Assessing investor returns and structuring equity waterfalls
• Exit strategies and refinancing options

Module 9: Commercial Modeling and Decision Making

• Incorporating real-world business assumptions into models
• Evaluating project viability under different market conditions
• Optimizing financial models for decision-making
• Practical case studies and real-world applications

Module 10: Hands-on Case Study

• Building a comprehensive project finance model from scratch
• Group exercises on structuring and financing a real-world project
• Presenting financial models and investment recommendations
• Course recap and certificate issuing

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement.

Training Venue 

The training will be held at our Upskill Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Upskill certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request.

Terms of Payment: Unless otherwise agreed between the two parties, payment of the course fee should be done 3 working days before commencement of the training to enable us to prepare better

Course Booking

Please use the “book now” or “inquire” buttons on this page to either book your space or make further enquiries.