Project Modeling in Excel course. Project Modeling in Excel. Economics is a social science concerned with the factors that determine the production, distribution, and consumption of goods and services. The term economics comes. The New Pricing Environment The environment in which your pricing strategy operates has changed significantly due to the economic downturn. Fluctuating prices and costs. Fixed Income Securities and Derivatives; Money market instruments. Discount securities; Interest at maturity; Forward rate agreements; Non-callable bond coverage. Banks and federally chartered trust and loan companies are required to transfer to the Bank of Canada all unclaimed bank balances maintained in Canada in Canadian. Practical, hands- on training for creating and understanding project finance models. Overview. Objective. Project Modeling in Excel provides participants with the ability to create and understand project finance models. Through building models in a hands- on environment, you will be better able to quantify risks of different types of projects and to use models to design the best debt, equity and contractual structure to build models. Modelling the Term Structure of Interest Rates: a Literature Review Rosa Mar The program includes effective development of scenario analysis through use of data tables or VBA where you will learn how to create a master scenario page with time series and fixed variables. Finally, you will learn how to appreciate costs and benefits of different project finance features such as covenants, reserves, sweeps, back- up facilities and debt service reserve accounts. Understand the objectives and the structure of project finance models in terms of structuring and risk analysis. Be able to interpret models developed by other people and add master scenario pages to any model. Create flexible models with effective summary statistics to evaluate alternative timing, operating assumptions, financial structures, re- financing and contract pricing Work through the difficult problems in project finance modeling including- Complex cash flow waterfalls with balloon payments and mini- perm structures- Sizing of debt with capitalized interest and alternative drawdown schedules- Flexible debt sculpting with income taxes- Sizing of debt service reserves and use of DSRA in waterfall- Re- financing of debt and mini- perm debt- Debt service reverses that look ahead to future years. Quantify project risks using different techniques and understand mistakes in risk assessment. Incorporate structural enhancements into models and gain insight into the costs and benefits of the alternative features Learn Excel techniques to make better presentations from models and to make models more transparent and efficient.
Resources received by participants. Other than the most important item – knowledge of how to build, use and analyze models, participants in the program will receive many other resources, including the following software: A basic project finance model with macros and instructions so that participants can create a comprehensive analysis. Fully developed project finance software with debt structuring, debt sizing, contract pricing and sensitivity analysis Time series software that incorporates volatility, mean reversion and other parameters into models Monte Carlo simulation software that combines times series analysis with project finance modeling. Software that computes implied volatility and option pricing using the Black- Scholes model. Yield spread models that compute required yield spreads on project finance debt form time series analysis Corporate modeling software that extends project finance models to evaluate valuation of entire corporations. A variety of excel exercises that compute debt capacity, resolve circularity, develop tornado diagrams and construct vintage depreciation In addition to the software resources, participants will receive extensive data based on actual projects, commodity price history and case studies. Laptop required. Laptop computers, equipped with Microsoft Excel, are required for this program. It is necessary that participants bring their own laptop, or if requested, a laptop can be provided at an additional charge. Commodity Modeling And Pricing Pdf ViewerContent. Project Modeling in Excel is a three- day program. Each of the three days is divided into two modules, resulting in a total of six modules for the entire program. The outline below presents teaching objectives, lectures and case work in each of the six different modules. Day 1 - Module IIntroduction and Model Structure The Project Modeling with Excel program begins with introductory comments about the skills and general objectives in project finance modeling with an emphasis on the difficulty in measuring and valuing risk. After the introductory discussion, participants begin work on construction of a flexible, structured, accurate and transparent project finance model. Subjects included in module three include setting up a debt schedule, debt sculpting, flexible debt terms, debt capacity, debt structure and credit measures. Debt schedule and debt capacity- Set- up of debt schedule from construction debt- Debt capacity from debt service coverage- Debt repayment with equal installments or mortgage repayments- Presentation of cash flow and debt service on summary page Debt structuring - Alternative debt tenor- Varying credit spreads- Verification tests for debt balance and debt repayment- Inclusion of bond financing and mini- perm. Debt sculpting- Four methods of debt sculpting without taxes and DSRA- Advantages of backward method with taxes- Circularity problems arising from sculpting- Resolution of circularity problems using function. Day 2 - Module IVDSRA, MRA and Cash Flow Waterfall. The fourth module moves from debt structuring to risk analysis. Finally, the LLCR, PLCR and the average debt life are computed. Profit and loss statement and income taxes- Structuring profit and loss- Inclusion of depreciation on interest during construction and amortization of fees- Programming basic net operating loss account - Accounting for expiration of net loss carry forward. Calculation of alternative financial ratios- DSCR with and without tax effect of interest during construction and fees- Calculation and interpretation of PLCR with varying interest rates- Adjustments to compute LLCR - Alternative calculations of loan life. Balance sheet calculation- Limited need for balance sheet in analysis- Concept of computing equity balance and using closing balances from oher sections of the model- Use of balance sheet as auditing tool. Day 3 - Module VIRe- financing and Risk Analysis. In the final part of the program participants use the model they have created to analyze a series of decisions and evaluate various risks. Participants first address traditional measurement of risk through break- even analysis, scenario analysis and sensitivity analysis. Next, the program moves to mathematical approaches that directly attach a numeric value to risk. Exercises in this part of the program include creation of time series models, Monte Carlo simulation, and credit issues associated with long- term supply contracts. Economic value drivers in projects- Capital expenditures- Forward price- Volume – capacity utilization- Input forward price- Efficiency- Operation and maintenance expenses Major risks of projects (analysis and mitigation) - Commodity price risk versus volume risk- Technology risk (breakdown and obsolescence)- Input supply and availability risk- Foreign currency and political risk- Construction cost- Contract breakage risk. Re- financing - Switches for the re- financing period- Sources and uses for re- financing- Sizing of re- financed debt. Risk Analysis Exercises Set- up of master scenario page Break- even analysis Sensitivity analysis and graphs Scenario analysis Tornado analysis Monte Carlo Simulation Who should attend. Project Modeling in Excel targets financial professionals involved in evaluating the economics of energy, infrastructure, real estate and other projects. Bankers, developers, financial advisors, consultants, investors, managers and others interested in creating models or simply understanding how to interpret models created by others can benefit. For a broader understanding of the field, the program can be taken in conjunction with AIF’s Project Finance program. Prerequisite. Project Modeling in Excel is a hands- on program that will be conducted using numerous exercises in Excel. All participants are required to have a solid, basic knowledge of Excel prior to attendance. Optional Excel Session An optional extra Excel session is available for participants who do not regularly use Excel in their day- to- day work. The objective of this session is to assure that all participants become familiar with the Excel tools needed to be able to work comfortably on the class exercises. He is a former banker and has taught courses for major corporations and financial institutions around the world for many years. Visit his website to see some samples of models: www. He received an MBA specializing in econometrics (with honors) from the University of Chicago and a BSc in Finance from the University of Illinois (with highest university honors). Accreditation. CFA Institute - CE credit hours. Amsterdam Institute of Finance is registered with CFA Institute as an Approved Provider of continuing education programs. This program is eligible for 1. CE credit hours as granted by CFA Institute. If you are a CFA Institute member, CE credit for your attendance at this event will be automatically recorded in your CE Diary. VBA - PE points. The VBA in the Netherlands is the association for investment professionals and their customers. For other EU and Non- EU clients, VAT may be due by client and will not be charged by AIF. Fees may be subject to change. Testimonials. A comprehensive review of the main project finance assumptions. It really increases your knowledge.
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