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Improve your financial model with best practice Index-linked bonds

This tutorial outlines the reasons for using index-linked debt instruments and demonstrates a way to model them, focusing particularly on index-linked bonds.

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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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Project finance transactions and debt sizing versus debt sculpting

Financial modelling of debt facilities has been, is, and always will be, at the heart of a project finance transaction. While the basic terms and conditions are incorporated in the term sheet, the industry nuances and accepted practices are generally expected by senior bankers to simply be embedded into the model. Two of these concepts are often confused when discussing and modelling project finance debt so let us take a look at this issue.

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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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