WALL STREET TRAINING
Infrastructure & Energy modeling
Introduction
Understand and build valuation and risk/return analysis model for infrastructure and energy projects
Dates
Time(lunch 1:00-2:00)
Pricing
What to bring
LocationGoal
| Infrastructure and energy sector is different from manufacturing & service sectors regarding business models, government regulation, tax issues and financing vehicles. This course will prepare you for such large scale and globally diverse infrastructure and energy deal analyses. |
Financial model examples
Recommended for
01
Finance professional who evaluates construction, energy, infrastructure and other alternative investments and projects
02
A person with financial modeling experiences (1-10 years)/Those who already took basic/core financial modeling courses
03
Industry practitioners or government/international agency regulator who plan and execute SOC projects
Instructors
Edward Ha
– Standard Chartered : Global Project & Export-Financing
– Hanwha Asset : Global Infra/PF Investment Senior Manger
Started career in Global PEF and IB Seoul regional offices, dealt multiple M&A, LBO, PF deals, creating detailed DCF, LBO, Project Financing models for in-depths valuation and analysis.
Currently working at one of major asset management firm in Korea, analyzing foreign Alternative Investments and Project Financing
Syllabus
First day AM: Profit & Loss, Cash flow projection
-Establish key indicators reflecting the project
-Calculate and estimate infrastructure asset operations
-Description of market revenue and structure of revenue
-Calculate and estimate raw material cost, other variable costs and fixed costs
-Calculation of capital expenditure and operating cycle
-Calculate cash flow available for debt service
-Add project IRR and scenario analysis
First day PM: Estimate construction period
-Explanation of sources and uses (capital structure, total construction costs, financial costs, interest expenses)
-Debt/bond principal repayment schedule based on construction indicators
-Calculate interest and other financial expenses during construction period
-Description and calculation of depreciation types (PP&E balance)
-Sources and uses balance check during the construction period
Second day AM: Debt repayment schedule, other accounting items
* Debt repayment schedule
-Build debt/bond interest expense and principal repayment schedule for revolver credit facility, priority/subordinated notes, loans, etc
-Credit foncier and DSCR based on sculpting
-Description of debt repayment and order based on tranches (waterfall formation)
-Practitioners’ considerations when building debt schedule (DSCR, IRS, etc)
* Other accounting items
-Calculate excess return and liquidation dividend items
-Corporate taxes calculation (tax brackets and loss carryforwards included)
-Circular reference explanation and activation
Second day PM: Valuation
-Calculate returns (IRR, cash yield and MOIC per investors) and organize financial ratios (DSCR, Credit profile, etc)
-Deal structuring, bidding price calculation and sensitivity analysis
-M&A multiples (precedent transaction comps)
Third day AM: Case Study
-Key investment considerations and background
-Description of revenue and cost constructions and case study model
-Preliminary DCF calculation
Third day PM: Infrastructure investment industry overview and Project Financing
* Infrastructure investment industry overview
-Types and characteristics of infrastructure assets (energy, traffic, telecom, healthcare)
-Different types of infrastructure/energy business models (PPP, Regulated, Availability Based, Merchant Based)
-Different perspectives of equity and debt investors
-Comparison of developed and developing infrastructure markets
* Project Financing
-Overview of infrastructure investment capital structure and terms & conditions of financial instruments
-Excel calculation example of debt schedule and cash sweep
-Difference between normal loans and project financing
-Actual project financing investment case study with key due diligence checkpoints
FAQ
Pricing
Pricing