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
Read more.
Mixing model uses
Be careful not to mix up different model uses if they are incompatible. An error which often arises is the
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Model layout
I have a profound dislike of models with excessive tabs (or sheets). I believe this makes it difficult to trace
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Model periods
In the past, project models usually had a monthly period during construction, and a quarterly, semi-annual or annual period during
Read more.
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.
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Dealing with circular references
Circular references arise naturally in project models. Examples of typical circular references include: The DSRA is funded by a draw
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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,
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Modelling an infrastructure portfolio
Infrastructure investors may over time acquire a portfolio of assets, whether they be equity or debt investors. In South Africa,
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Simple model examples
Here are some simple model examples. Please feel free to use them, but only subject to the disclaimer that you
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Operationalising project models
Why do it? Once a project has been through its financing and construction phases, the project may want to operationalise
Read more.
Valuing infrastructure projects
From time to time an infrastructure project or its shareholders may need to know the value of the project’s equity.
Read more.