Project finance modelling

Verdigris builds new project models for its clients for different purposes:

Initial feasibility assessment;
Moderate-level equity models; and
Full lenders’ base case models for funding purposes.

Verdigris also operationalises project models for its clients – see the post in this section for more detail on our preferred approach.

The following articles relate to project finance modelling. They can be read sequentially, or individually, as you require.

If you have any queries or comments, please email me at doug@verdigris.co.za, or leave a comment in the comments section in the relevant article.

Project finance modelling

A project finance model is written in order to assess the feasibility and bankability of a particular project (for our

Mixing model uses

Be careful not to mix up different model uses if they are incompatible. An error which often arises is the

Model layout

I have a profound dislike of models with excessive tabs (or sheets). I believe this makes it difficult to trace

Model periods

In the past, project models usually had a monthly period during construction, and a quarterly, semi-annual or annual period during

Debt corkscrews

An example of a simple Simple debt corkscrew.equal principal repayments can be downloaded here, and you can download a mortgage-style debt corkscrew here.

Dealing with circular references

Circular references arise naturally in project models. Examples of typical circular references include: The DSRA is funded by a draw

Using VBA functions and procedures

Functions Sometimes it may be very tempting to use vba functions in your project model. However, if at all possible,

Operationalising project models

Why do it? Once a project has been through its financing and construction phases, the project may want to operationalise

Valuing infrastructure projects

From time to time an infrastructure project or its shareholders may need to know the value of the project’s equity.

Modelling an infrastructure portfolio

Infrastructure investors may over time acquire a portfolio of assets, whether they be equity or debt investors. In South Africa,

Simple model examples

Here are some simple model examples. Please feel free to use them, but only subject to the disclaimer that you