Project finance dscr debt sizing help
Can any kind soul please share the thought process behind debt sizing based on dscr? I have found myself in a weird situation of being in infra investing on the buy side with no prior background in project finance. My firm looks to buy loans post financial completion so we are never part of the structuring process in determining loan tenor and debt sizing.
I am looking to transition into a traditional pf underwriting route however I don't seem to be hitting the spot when the interviewers ask how would I analyse the debt sizing dscr with and without merchant risk (the most is i understand the formular behind it). I am based in Asia so from my understanding the debt sizing dcsr is based on market standard practice and negotiation eg P90 1.2x and P99 1.0x, and deals with merchant risk are very rare. Would really appreciate some clarity on how to properly articulate debt sizing question with and without merchant risk, thank you!