FEATURES

What makes a project finance model different from an ordinary cash flow model? Usually the following features, all essential for a project finance model and all found in Promoter (listed here in alphabetical order):

Accounting currency

Allows you to specify the currency in which the company accounts are prepared; and displays the exchange rate adjustments on the balance sheets.  Not to be confused with the display currency which the user also sets but in a different dialog box.

Bank accounts

an escrow as well as an operating account. The user sets the currency and target balances. The account can earn interest which is credited to the project.

Cash waterfall (waterfall of accounts)

determines how the funds are disbursed from the escrow account. It is essential for carrying out the analyses when things do not go as planned (as is inevitably the case)

Dividend policy / cash traps

often set by the lenders. The policy may restrict the payment of dividends in a variety of different ways, such as a limitation on the balance sheet (e.g. debt to equity ratio) or by an annual or life debt cover ratio.

Legal structures

A range of different legal configurations such as corporations, partnerships and joint ventures.  It will also handle certain oil and gas structures such as service agreements and gas to liquids projects where there may be several corporations in a chain (gas development, LNG, shipping and terminal).

Loans

The user has the flexibility to set both construction and operating phase loans with different draw downs and repayments. It can handle export credits (linked to the supply of equipment and materials), commercial loans and bonds.

Sinking funds

usually a precondition for any loan. Promoter will accept a number of sinking funds. The user sets the currency and the target balance which can be linked to a variety of different figures such as the loan amount and/or a maintenance figure.

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