The Vair Companies
Infrastructure Modeling and Legal Analysis for Mexico

Presented in collaboration with:
  • Create financial models that are easy to navigate without forfeiting proper deal sophistication and analysis
  • Produce a robust model from feasibility stages through project documentation to financial close
  • Identify and quantify the risks of project through the model from a sponsors', participants' and lenders' viewpoints
  • Learn the power of "negotiating off the model" instead of "modeling off the negotiations"
  • Analyze model intricacies surrounding Mexican structures, including CUCA and CUFIN
OBJECTIVES

Infrastructure Modeling for Mexico is a master-level class. Besides analyzing classic elements of project and infrastructure finance, this course takes a unique look at model intricacies surrounding Mexican structures, such as CUCA and CUFIN, among other items. After reviewing some basic elements of project finance, the participants are given a full suite of project documents and macroeconomic information that are indicative to any infrastructure project. Immediately following is a step-by-step procedure of building a complex equity-case model. This phase of the course demonstrates how contracts dovetail and that nothing in project finance is mutually exclusive.

Once completed, the delegates review the model from a due-diligence perspective, usually taken from a lender or third-party equity perspective. The final phase of this module uses sophisticated modeling techniques to help the practitioner price the deal. Special consideration is given to more advanced project-finance issues like liquidated damages analysis and appropriate security packages. The overriding theme of this specialty course is to use the model as a highly-developed financial analysis tool that reviews the appropriate risk-versus-reward profiles of project finance.

This is an advanced course and is geared to the intermediate-to-advanced delegate.

OUTLINE
Part 1Project Finance versus Corporate Finance
Part 2The Role of the Model & Common Rules
Part 3The Risk Matrix
Part 4Introduction of a Project for Modeling
Part 5The Project Documents
Part 6The Assumption Page
Part 7Operations
Part 8Construction
Part 9Insurance
Part 10Taxes
Part 11Depreciation
Part 12Financing(s)
Part 13The Income Statement
Part 14The Balance Sheet
Part 15The Statement of Cash Flows
Part 16Equity Returns
Part 17Mexico Related Structuring & Modeling Issues
Part 18Loan Values
Part 19"Pricing the Deal" and Scenario Analysis
Part 20Running Sensitivities & Documenting Changes

STRUCTURE

As with our all our financial modeling courses, this is a hands-on practical course, whereby the delegate takes our "learn by doing" approach. The course structure for each module follows a four-step pattern: 1) presenting the section material, 2) a spreadsheet exercise, 3) review of the exercise; then 4) follow-up with a question and answer session. Each successive session builds from the previous session. Each participant will be given exercise and review files to insure course fluidity, no matter the participants' background or level.

Participants go through the process of building a fairly complex model step-by-step using a series of project document tariff sheets and macroeconomic information. This phase takes an equity view of the model. Next, the course reveals the power of the model by applying it to different perspectives, such as that of project lenders or equity holders. The third phase of the course uses more sophisticated modeling techniques, such as tables, goal searches and Solver, as well as discussion of Monte Carlo simulations.

(NB: Prerequisite - A general knowledge of Excel, accounting principals and financial modeling is a minimum requirement for this course; particularly, the ability to generate a Statement of Cash Flows from an Income Statement and Balance Sheet. It is strongly suggested that those delegates with limited financial modeling experience consider taking Vair's Financial Statement Modeling and Analysis course)

VENUES

Vair Training courses are held at world-class international venues. Registration fees include morning coffee/tea, networking lunches and afternoon refreshments. Course materials are provided electronically on-site. Detailed venue descriptions, times and logistics are included with post-registration materials and documents.