Debt Sizing and Debt Sculpting in Project Finance: A Step-by-Step Guide (One Tranche of Senior Debt)

This course provides a clear, hands-on introduction to debt sizing and debt sculpting, two of the most critical techniques in project finance modeling. Designed around a single tranche of debt, the course walks through both the conceptual foundations and practical Excel applications of sizing and shaping project debt to meet lender requirements.

Starting with a real term sheet clause, the course explains why lenders impose constraints like minimum DSCR and maximum gearing, and how these shape a project’s capital structure. Through a simplified financial model, participants learn how to apply these constraints to calculate maximum debt capacity, identify the binding limit, and understand the trade-offs involved.

The second half of the course introduces the concept of debt sculpting, including the equation behind sculpted repayments based on a target DSCR. A final case study shows how to build a flexible sculpted debt schedule aligned with the project’s cash flow profile—including seasonal variability.

The course avoids circular references for simplicity, while reinforcing the financial logic behind real-world project structures. It is ideal for professionals, students, and analysts seeking a practical, intuitive grasp of project finance debt modeling.