How do I model financing in the project calculation?

Topic Overview

• Financing overview and liquidity curve
• Navigation between phases
• Keeping track of key metrics
• Create and manage financing lines
• Monthly cash flows in the table
• Financing KPIs
• AI analysis
• Integration into calculation and assumptions

Financing overview and liquidity curve

In the project calculation, you can model the financing of your project directly in the Cash flow tab under Financing. In the upper area, you see a liquidity curve that visualizes your capital requirement over the project duration with quarterly axis segments.

Navigation between phases

In the project calculation, you can model your project's financing in detail. The navigation between the different phases has been revamped. The colors of the phases now exactly match the colors used in the cash flow table. This allows you to orient yourself more quickly in the timeline planning.

Keeping track of key metrics

To facilitate your financing planning, important information is now surfaced directly in the user interface:

• Funding gap: Instantly see how much capital is still required.
• Coverage: Check the percentage status of your project coverage.
• Milestone duration: Keep track of the exact duration of individual project milestones.

Create and manage financing lines

You can create various financing lines (equity, mezzanine, debt) to cover your capital requirement for the phases defined in the milestones and phases.

1. Open Plan in the sidebar and select Project calculation.
2. Switch to the Cash flow tab and select Financing.
3. Click the plus icon at the bottom to create a new line.
4. Define the type of financing line, the interest rate, the ratios, the commitment interest, and the maximum volume.
5. In the Interest payment field, choose the desired frequency (Monthly, Quarterly, Semi-annually, Annually, or At maturity). Interest continues to accrue every month, but the selected frequency controls exactly when it impacts the cash flow.
6. To adjust the order of drawdown and repayment (waterfall), you can move the lines via drag & drop.
7. Click the trash icon at the end of a row to delete a financing line.

Monthly cash flows in the table

For a detailed view of the monthly cash flows, switch to the table view.

1. Click on the Table sub-tab in the financing view.
2. Here you can see the monthly financing flows per phase, including drawdown, interest, commitment interest, repayment, and any financing gaps.

Financing KPIs

On the right side of the financing overview, you will find an area for the most important key performance indicators (KPIs) of your project.

1. Expand the KPI area on the right edge if it is closed.
2. You can now view calculated metrics such as the unlevered internal rate of return (IRR unlevered), Equity IRR, Equity Multiple, and Loan-to-Cost (LTC).

AI analysis

Alasco offers you the option to receive an automated assessment of the financial viability of your project.

1. Click the AI analysis button in the upper right area of the financing overview.
2. You will receive an assessment written in natural language.

Integration into calculation and assumptions

The data modeled in the financing is automatically integrated into the static calculation.

• Costs: In the Calculation tab, you will find an automatically generated, read-only "Financing costs" node in the cost tree.
• Assumptions: In the Assumptions tab, you will find a read-only "Financing assumptions" node in the structure.

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