Before you circulate a project finance model to lenders, it pays to know what the credit team will test first.

Structure & transparency

Lenders expect a clear separation of construction, operations, and financing tabs; documented macros; and a cash waterfall that ties to the term sheet.

We recommend a short assumptions memo alongside the model — especially for production, degradation, and O&M escalation.

Assumptions that get challenged

Production P50/P90, curtailment, merchant tail assumptions, and tax equity structure are scrutinized on every deal.

Outputs to include

  • Project IRR, equity IRR, and DSCR profiles
  • Sensitivity tables on production, capex, and rate
  • Drawdown schedule aligned to EPC milestones
  • Covenant headroom under base and downside cases

Next steps

An independent model audit or a quick pre-review can surface issues before the lender does.

Discuss your model