Skip to content
Felix
  • Topics
    • My List
    • Felix Guide
    • Asset Management
    • Coding and Data Analysis
      • Data Analysis and Visualization
      • Financial Data Tools
      • Python
      • SQL
    • Credit
      • Credit Analysis
      • Restructuring
    • Financial Literacy Essentials
      • Financial Data Tools
      • Financial Math
      • Foundations of Accounting
    • Industry Specific
      • Banks
      • Chemicals
      • Consumer
      • ESG
      • Insurance
      • Oil and Gas
      • Pharmaceuticals
      • Project Finance
      • Real Estate
      • Renewable Energy
      • Technology
      • Telecoms
    • Introductory Courses
    • Investment Banking
      • Accounting
      • Financial Modeling
      • M&A and Divestitures
      • Private Debt
      • Private Equity
      • Valuation
      • Venture Capital
    • Markets
      • Economics
      • Equity Markets and Derivatives
      • Fixed Income and Derivatives
      • Introduction to Markets
      • Options and Structured Products
      • Other Capital Markets
      • Securities Services
    • Microsoft Office
      • Excel
      • PowerPoint
      • Word & Outlook
    • Professional Skills
      • Career Development
      • Expert Interviews
      • Interview Skills
    • Risk Management
    • Transaction Banking
    • Felix Live
  • Pathways
    • Investment Banking
    • Asset Management
    • Equity Research
    • Sales and Trading
    • Commercial Banking
    • Engineering
    • Operations
    • Private Equity
    • Credit Analysis
    • Restructuring
    • Venture Capital
    • CFA Institute
  • Certified Courses
  • Ask An Instructor
  • Support
  • Log in
  • Topics
    • My List
    • Felix Guide
    • Asset Management
    • Coding and Data Analysis
      • Data Analysis and Visualization
      • Financial Data Tools
      • Python
      • SQL
    • Credit
      • Credit Analysis
      • Restructuring
    • Financial Literacy Essentials
      • Financial Data Tools
      • Financial Math
      • Foundations of Accounting
    • Industry Specific
      • Banks
      • Chemicals
      • Consumer
      • ESG
      • Insurance
      • Oil and Gas
      • Pharmaceuticals
      • Project Finance
      • Real Estate
      • Renewable Energy
      • Technology
      • Telecoms
    • Introductory Courses
    • Investment Banking
      • Accounting
      • Financial Modeling
      • M&A and Divestitures
      • Private Debt
      • Private Equity
      • Valuation
      • Venture Capital
    • Markets
      • Economics
      • Equity Markets and Derivatives
      • Fixed Income and Derivatives
      • Introduction to Markets
      • Options and Structured Products
      • Other Capital Markets
      • Securities Services
    • Microsoft Office
      • Excel
      • PowerPoint
      • Word & Outlook
    • Professional Skills
      • Career Development
      • Expert Interviews
      • Interview Skills
    • Risk Management
    • Transaction Banking
    • Felix Live
  • Pathways
    • Investment Banking
    • Asset Management
    • Equity Research
    • Sales and Trading
    • Commercial Banking
    • Engineering
    • Operations
    • Private Equity
    • Credit Analysis
    • Restructuring
    • Venture Capital
    • CFA Institute
  • Certified Courses
Felix
  • Data
    • Company Analytics
    • My Filing Annotations
    • Market & Industry Data
    • United States
    • Relative Valuation
    • Discount Rate
    • Building Forecasts
    • Capital Structure Analysis
    • Europe
    • Relative Valuation
    • Discount Rate
    • Building Forecasts
    • Capital Structure Analysis
  • Models
  • Account
    • Edit my profile
    • My List
    • Restart Homepage Tour
    • Restart Company Analytics Tour
    • Restart Filings Tour
  • Log in
  • Ask An Instructor
    • Email Our Experts
    • Felix User Guide
    • Contact Support

Building a Full Project Finance Model

Understand how to engineer a large project finance model.

Unlock Your Certificate   
 
0% Complete

25 Lessons (98m)

Show lesson playlist
  • Description & Objectives

  • 1. Main Model - Uses of Funds

    05:01
  • 2. Main Model - Sources of Funds

    03:54
  • 3. Main Model - Other Assumptions

    02:57
  • 4. Main Model - Revenues and Variable Costs

    03:58
  • 5. Main Model - Depletion of Soft Costs and PP&E

    09:29
  • 6. Main Model - Asset Retirement Obligation - Asset

    03:19
  • 7. Main Model - Asset Retirement Obligation - Liability

    02:10
  • 8. Main Model - Income Statement

    03:36
  • 9. Main Model - Calcs - Operating Working Capital

    03:06
  • 10. Main Model - Calcs - Equity

    01:52
  • 11. Main Model - Balance Sheet

    04:04
  • 12. Main Model - Cash Flow Preparation

    02:17
  • 13. Main Model - Cash Flow from Operations

    03:50
  • 14. Main Model - Cash Flow from Investing and Financing Activities

    04:03
  • 15. Main Model - Cash Flow Available for Debt Service

    03:05
  • 16. Main Model - Revolving Credit Facility

    06:00
  • 17. Main Model - Syndicated Loan

    08:48
  • 18. Main Model - Debt Service Reserve Account

    05:39
  • 19. Main Model - Non-Cash Interest

    02:23
  • 20. Main Model - Wiring Up the Debt Lines

    01:43
  • 21. Main Model - Interest During the Construction Phase

    03:15
  • 22. Main Model - Interest During the Operational Period

    03:03
  • 23. Main Model - Returns to Equity Holders

    03:30
  • 24. Main Model - Loan Life Coverage Ratio

    03:30
  • 25. Main Model - Structuring the Debt

    03:06

Prev: Building a Simple Project Finance Model Next: Introduction to Renewable Energy

Main Model - Structuring the Debt

  • Notes
  • Questions
  • Transcript
  • 03:06

Modeling a large project finance model - debt structuring

Downloads

Main Model - Structuring the Debt EmptyMain Model - Structuring the Debt Full

Glossary

debt structuring loan maturity modeling Project finance
Back to top
Financial Edge Training

© Financial Edge Training 2025

Topics
Introduction to Finance Accounting Financial Modeling Valuation M&A and Divestitures Private Equity
Venture Capital Project Finance Credit Analysis Transaction Banking Restructuring Capital Markets
Asset Management Risk Management Economics Data Science and System
Request New Content
System Account User Guide Privacy Policy Terms & Conditions Log in
Transcript

Let's take a look at how we would structure our debt in the project if we were to do it from scratch. So let's begin by adding another metric to our little summary section here, and that's gonna be the loan maturity. And we can calculate this as the sum of the years over which the syndicated loan is outstanding, and we can get that data from our finance tab. And currently that would be six years. So let's go ahead and take our syndicated loan amount down to 0 to begin with, and let's actually make a small change to our debt service coverage ratio, which at the moment might be a little too high at 1.3. So let's make it 1.25. And let's see what would happen if we start with a syndicated loan size of 1000. Well, what you can see here is that our loan life coverage ratio is 1.6. It's still pretty decent, very high. We're also gonna assume that we want a loan maturity no higher than 10 years. In this case, we're at only four years, so that's very low. So it seems like we have a significant capacity to add debt to this project. So let's go up to 1500 in our loan size. And now you see a few things happening. One of them is that the equity IRR is actually going up as we increase, of course, the amount of debt financing, our loan life coverage ratio is still pretty high at 1.42, and our loan maturity is still well below 10. So let's go up to 2000. And again, our metrics still look good with an equity IRR now of 14.4. Our loan life coverage ratio is at 1.3 and our loan maturity is at six. Now what happens if we go really high to 3000? We hear what you see. Of course, the equity IRR is gonna go up by a significant amount, given that we only have now 3% of the total capital in the form of equity. But what you see here is that now our loan life coverage ratio, it's pretty low if we wanted to keep it above 125. Of course, we failed in the sense that now we're 1.14 and we've sort of reached the maximum loan maturity that we want to have in this loan.

So in this model, if we bring the syndicated loan size to around 2,700, I think we would get the best outcome. We would have a loan life coverage ratio, which is pretty much in line with a debt service coverage ratio assumption of 1.25. We would have a loan maturity that is below 10 years, and our equity IRR is actually very nice at 29.4%. Now keep in mind that all of these metrics are based on our current forecasted operational performance of the project, and we'll definitely need to sensitize those operational forecasts.

Content Requests and Questions

You are trying to access premium learning content.

Discover our full catalogue and purchase a course Access all courses with our premium plans or log in to your account
Help

You need an account to contact support.

Create a free account or log in to an existing one

Sorry, you don't have access to that yet!

You are trying to access premium learning content.

Discover our full catalogue and purchase a course Access all courses with our premium plans or log in to your account

You have reached the limit of annotations (10) under our premium subscription. Upgrade to unlock unlimited annotations.

Find out more about our premium plan

You are trying to access content that requires a free account. Sign up or login in seconds!

Create a free account or log in to an existing one

You are trying to access content that requires a premium plan.

Find out more about our premium plan or log in to your account

Only US listed companies are available under our Free and Boost plans. Upgrade to Pro to access over 7,000 global companies across the US, UK, Canada, France, Italy, Germany, Hong Kong and more.

Find out more about our premium plan or log in to your account

A pro account is required for the Excel Add In

Find out more about our premium plan

Congratulations on completing

This field is hidden when viewing the form
Name(Required)
This field is hidden when viewing the form
Rate this course out of 5, where 5 is excellent and 1 is terrible.
Were the stated learning objectives met?(Required)
Were the stated prerequisite requirements appropriate and sufficient?(Required)
Were the program materials, including the qualified assessment, relevant and did they contribute to the achievement of the learning objectives?(Required)
Was the time allotted to the learning activity appropriate?(Required)
Are you happy for us to use your feedback and details in future marketing?(Required)

Thank you for already submitting feedback for this course.

CPE

What is CPE?

CPE stands for Continuing Professional Education, by completing learning activities you earn CPE credits to retain your professional credentials. CPE is required for Certified Public Accountants (CPAs). Financial Edge Training is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors.

What are CPE credits?

For self study programs, 1 CPE credit is awarded for every 50 minutes of elearning content, this includes videos, workouts, tryouts, and exams.

CPE Exams

You must complete the CPE exam within 1 year of accessing a related playlist or course to earn CPE credits. To see how long you have left to complete a CPE exam, hover over the locked CPE credits button.

What if I'm not collecting CPE credits?

CPE exams do not count towards your FE certification. You do not need to complete the CPE exam if you are not collecting CPE credits, but you might find it useful for your own revision.


Further Help
  • Felix How to Guide walks you through the key functions and tools of the learning platform.
  • Playlists & Tryouts: Playlists are a collection of videos that teach you a specific skill and are tested with a tryout at the end. A tryout is a quiz that tests your knowledge and understanding of what you have just learned.
  • Exam: If you are collecting CPE points you must pass the relevant CPE exam within 1 year to receive credits.
  • Glossary: A glossary can be found below each video and provides definitions and explanations for terms and concepts. They are organized alphabetically to make it easy for you to find the term you need.
  • Search function: Use the Felix search function on the homepage to find content related to what you want to learn. Find related video content, lessons, and questions people have asked on the topic.
  • Closed Captions & Transcript: Closed captions and transcripts are available on videos. The video transcript can be found next to the closed captions in the video player. The transcript feature allows you to read the transcript of the video and search for key terms within the transcript.
  • Questions: If you have questions about the course content, you will find a section called Ask a Question underneath each video where you can submit questions to our expert instructor team.