Financial Modeling and Project Structuring

Project finance model: Project finance is only possible when the project can produce enough cash to cover all operating and debt-servicing expenses over the whole tenor of the debt. A financial model is needed to assess economic feasibility of the project.

Model's output is also used in structuring of a project finance deal. Most importantly, it is used to determine the maximum amount of debt the project company can have and debt repayment profile, so that in any year the debt service coverage ratio (DSCR) should not exceed a predetermined level. DSCR is also used as a measure of riskiness of the project and, therefore, as a determinant of interest rate on debt. Minimal DSCR set for a project depends on riskiness of the project, i.e. on predictability and stability of cash flow generated by it.

Our team's extensive experience of achieving financial closure for projects, demonstrates ourability to prepare bankable projects and tie-up funds from financial markets - both debt and equity at competitive terms. The lending experience available with our team gives us an insight into lender concerns under the prevailing regulatory and market environment. Our legal advisory team has been involved in structuring and reviewing project contracts and financing agreements as well as assisting clients in resolving disputes with lenders and other investors. Our panel of Project Finance specialists can assist you with the following: