noncircIDCfundillustration by 0T0N83

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									Note: for convenience of simple illustration, this spreadsheet does not conform to some elements of basic good practice for cash flow modelling, especially with regard to layout of timelines etc!!
Prepared by Penelope Lynch to illustrate calculation principals for this question only!
IDC and Funding Circularity Illustration                                                                                                                              end of construction
                                                                                                                                                                operating period >>>>>
                                                                  First half 2nd half First half 2nd half First half 2nd half First half 2nd half First half 2nd half First half 2nd half
                                                    Totals           year        year        year        year       year         year       year        year       year        year          year       year
                                                                      1           2           3           4           5            6          7           8          9           10           11         12
This file shows a highly simplified funding calculation, prepared for illustrative purposes only, to consider the treatment of IDC calculations, and circularity in funding calcs.
Note that in a project finance model many other factors would be included, both in terms of inputs, calculations, and structure, for example, all timings would be flexible, not rigid as in this case.
To use this file, please set 'calculation' to 'manual', make any required data changes (values in blue) and run recalc macro




                       Inputs

                              Construction Costs                    405                 100             10            10            50          100            25            10          100

          Equity funding as % total funding                    20%


                                         Loan Data

         Loan up front fees % of facility size                 1.5%
                   Loan Interest rate % p.a.
                              (semi annual payment)            8.0%


                   Calculations

Construction Costs                                                  405                 100             10            10            50          100            25            10          100             0     0     0     0
Legal and finance fees                                                5                   5              0             0             0            0             0             0            0             0     0     0     0
             Initial Funding Requirement                            410                 105             10            10            50          100            25            10          100             0     0     0     0

                                   Equity amount                     90

                                 Equity Drawings                     90                   90             0             0             0             0             0             0            0            0     0     0     0

             Remaining funding requirement                          320                   15            10            10            50          100            25            10          100             0     0     0     0

                                 Loan facility size                 360

           Calculation of Loan Up-front fees                           5                    5

                     Loan Principal Drawings                        320                   15            10            10            50          100            25            10          100             0     0     0     0
                            Loan Repayments                         120                                                                                                                                       40    40    40 >>>>>> operating period not modelled
                   Loan Interest (semi-annual)
     calculated on average balance during half year
                                                                     93                     0            1             1             3             6             8             9           12           14    14    13    11
       Additional Drawings to fund interest                          40                    0             1             1             3            6             8            9            12
                Loan Balance Outstanding                            360                   16            26            38            90          196           229          248           360           360   320   280   240




                                                                                                        Illustrative file prepared by P.A. Lynch for Finance 3.0 Discussion board 2008
Macro support sheet                                Total
                                                    Loan    Total
                                                  Drawings Funding
               Currently calculated results            360      451
          Pasted values used in calculation            360      451
                        Check for solution    0          0        0   0
0   0   0   0   0

								
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