Project Finance interview technical questions
Hi everybody,
I gave up on trying to find a PF role, but out of the blue I got an interview with an industry fund next week. They mainly focus on renewable energy power plants, mainly wind and solar. I just wanted to know if anybody with experience in the field could give me any advice about which technical questions to expects and concepts to have crystal clear in case the interview goes technical.
Thanks everybody.
EDIT: phone completely messed up the post, here's the full response:
my 2cents
General technical qs: - what are the key features of PF vs corporate finance? (ie non-recourse debt, asset-backed security, off-balance sheet treatment (unless there's parent guarantee in place) - what ratios/metrics do you use to assess a project? - what is a dsra? MMRA? - how and why do you sculpt debt in a PF project? - how do you calculate DSCR? - why would PF prefer to use EBITDA multiples (instead of others like PE?)
Background homework suggestions: - try to find info on the firm, especially the recent deals they worked/bid on, then learn the jargon, search any technical terms you don't understand etc - read specialised websites like ijglobal and memorise general metrics to answer Qs like what equity IRR would you use for a wind project in your region? what price would you pay for a solar project with a take-or-pay agreement of $xm p.a. for 15 years? find some transaction multiples of recent deals to memorise too (for renewable power stations I'd suggest $/MW and EV/EBITDA)
Good luck!
Hm, posting from my phone and it looks like my answer above got cut in half, let me know if it looks like it's the case from your end and I'll repost
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