If a project generates a CADS of $15 million in Year 3, and the total debt service (principal + interest) due in Year 3 is $10 million, the DSCR is: DSCR=1510=1.5xDSCR equals fifteen-tenths equals 1.5 x Module 5: Equity Investors and Syndicated Lending
Measures if the project generates enough cash to pay its debt.
When calculating the , you must account for the raw cost of construction, operating costs, competitive neutrality adjustments, and the financial valuation of retained risks (risks the government keeps). Module 3: Risk Identification, Allocation, and Mitigation
Economic infrastructure (e.g., toll roads, airports) generates direct revenues from users. Social infrastructure (e.g., schools, hospitals) relies on government availability payments. Module 2: Project Finance Mechanics & Capital Structuring If a project generates a CADS of $15
The final module is the culmination of the course. It goes beyond simple multiple-choice questions.
While DSCR looks at a single period, LLCR looks at the entire life of the loan. It calculates the present value of future CFADS over the loan term divided by the outstanding debt.
Infrastructure is the backbone of the global economy. From toll roads and bridges to renewable energy farms and 5G towers, infrastructure assets are unique. They require massive upfront capital, produce stable long-term cash flows, and involve complex public-private partnerships (PPPs). Social infrastructure (e
The return generated for shareholders after deducting debt service payments. Because project finance utilizes high leverage (often 70-80% debt), Equity IRR is usually significantly higher than Project IRR. Strategies for Passing Coursera Quizzes Successfully
This is the most quantitative part of the course. Quizzes will test your ability to read financial statements and calculate critical debt sustainability ratios. Key Concepts Tested
Answer: d) All of the above
Because infrastructure projects use highly leveraged capital structures (often 70% to 90% debt), calculating the correct WACC is vital for discounting future cash flows.
: Project finance is often described as a "nexus of contracts" where the
Navigating the Coursera Course: Financing and Investing in Infrastructure While DSCR looks at a single period, LLCR
Answer: b) Potential for long-term returns