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DSRA – Debt Service Reserve Account

The debt service reserve account (DSRA) works as an additional security measure for lenders. It is generally a deposit which is equal to a given number of months projected debt service obligations. This tutorial explains how to code a transparent and efficient DSRA, and how it is linked to the financial statements without circular references.

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Using goal seek macro to achieve maximum debt limit

This tutorial demonstrates how the maximum debt limit can be solved based on a target debt service cover ratio (DSCR) when modelling a project finance project. This exercise indicates the maximum debt size that can be supported by a certain cash flow available for debt service (CFADS) profile.

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Average DSCR in financial modelling

There are two different ways to calculate the average debt service coverage ratio (ADSCR) that could result in different numerical outcomes. What are the methods, what are the limitations that we should be aware of and which one should be used?

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Cash sweep analysis in project finance

Stand-alone cash sweep analysis is an alternative metric for refinance risk and repayment ability in cash flow models for project finance. This tutorial outlines the key features of a modelling cash sweep calculation and its application in analysis of a project finance model.

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PLCR – Project Life Cover Ratio

The project life coverage ratio (PLCR) is a commonly used debt metric in project finance. Together with the debt service coverage ratio (DSCR) and loan life coverage ratio (LLCR), these debt metrics, in one form or another, usually appear in project finance term sheets and loan documentation, so they need to be modelled clearly and accurately.

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