Next we're going to model the senior debt.

Senior debt will start with zero, and that's because this is a startup situation with no existing debt.

The issuance of debt, the best place we can get that is source and uses.

We've got an area here for the senior debt drawdown and that's the amount borrowed within the year.

We're just gonna skip the mandatory payment for the moment, get the account working, copy it to the right and just make sure what we've built so far works okay, seems to be be working fine and we're ready to start our mandatory payment, which is quite complex. Let's plan it a little bit. First.

You can see the total here has created itself, and that's because we built it as part of the empty part of the file. What it's doing is it's counting up all of the issuances of debt in the entire model, like the CapEx before we've got that there. Now ready to, you could call it amortize. The mandatory payment schedule is 15 years once the grace period elapses. So what we need to do is divide that by 15, make sure it only happens when the grace period elapses and make sure that it never ends up amortizing below what's in the account to start with. So quite a lot of logic going on here and let's take that one by one. So first we've got a min.

We need to take the minimum of the debt divided by the schedule, so that would be the mandatory payment or what's left to pay.

That needs to only happen and this is a little tricky, needs to only happen once the grace period elapses, and so we've gotta do a one minus that flag.

Then the resulting figure is an amortization, which will be a deduction from the debt account. And so it'll be a negative. Let's see if that's working. It should only turn up once the grace period elapses. It should represent those two divided by each other, which it does, and it should stop doing it once this reaches zero. And that's hard to show without pulling the entire model forwards, but that's what the min is there to do. Without the min, you might find that the schedule there of repayment in 15 years is short enough that you might keep repaying and end up with a negative debt balance, which wouldn't make any sense.

We've done the waterfall element of the senior debt. We're now ready to model the interest. The interest. We're going to say we'll pay 3.8% lock that we're gonna pay it on the average of the balances, starting and ending, and now we're gonna attach it to a flag again, but again in a negative sense because only gonna pay that once the interest during construction period has elapsed.

Now what this represents is the other side of the coin from the IDC calculations that we did in source and uses. You might recall that in source and uses, initially we had interest being capitalized if there was interest, and then the IDC disappeared and that's because the construction period had elapsed and now the project is expected to pay that not as a capitalized cost, but as an expense that's gonna hit the p and l.

Now, that is something that will hit the p and I've just reminded myself and so I would like that to be a negative.

Now I'm a fan of negative presentation and so let's complete that by adding or attaching a minus one to it.