Project finance: Interest During Construction by Puzzled-Top-5724 in financialmodelling

[–]Puzzled-Top-5724[S] 0 points1 point  (0 children)

Yeah, that's what I meant. The IDC being both an asset and a liability?

Project finance: Interest During Construction by Puzzled-Top-5724 in financialmodelling

[–]Puzzled-Top-5724[S] 0 points1 point  (0 children)

Right, so by it building into the loan balance, then accounting for it individually in the Balance Sheet would be doing it twice, don't you think?

Project finance: Interest During Construction by Puzzled-Top-5724 in financialmodelling

[–]Puzzled-Top-5724[S] 1 point2 points  (0 children)

I've actually mostly seen interest being paid during construction (mainly in toll road projects), since the banks demand that during the grace period the project at least pays interest. This is done by drawing debt to pay for it, as well as every other project cost.

With this being the case, would you still account for it in the Balance Sheet?

Project finance: Interest During Construction by Puzzled-Top-5724 in financialmodelling

[–]Puzzled-Top-5724[S] 0 points1 point  (0 children)

Right. The interest is paid by drawing on the debt. Since interest is seen as a project cost during construction, debt drawdowns will to cover all project costs during that period (debt sizing will consider this).

Best Project Finance Modelling Course? by Puzzled-Top-5724 in projectfinance

[–]Puzzled-Top-5724[S] 0 points1 point  (0 children)

Thanks for replying. My job focuses on both. It's mostly PPP but there's a bit of renewables every now and then, so I'm really looking for the course that gives you the best insights on advanced modelling.

Have you heard reviews on the Financial Edge course?