Equity Demand calculations
Balance Sheet |
Essential for the Equity demand is the Equity Drawdown Mode. When "Drawdown as Needed" is selected the Equity demand is deposited when the demand exists. On the other hand when "Full Drawdown at Transaction (Equity First)" is selected the whole Equity demand is deposited at Transaction. |
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External Financing Need
The external financing need determines, per month, the funds that must be provided from outside the project (equity, debt & shareholder loans). It is the sum of the following components:
Capex – cash flows of all capex items with financing mode External (excluding exit proceeds).
Opex – cash flows of all opex items with financing mode External.
Transaction Expenditures – cash flows of all transaction expenditures with financing mode External.
Reserve Accounts – balance increases of externally financed reserve accounts. Only increases above the highest balance reached so far create a financing need; later re-fillings after withdrawals are financed operationally.
Open Items – payables (opex, tax, debt service) are financed externally in full; receivables (sales, reserve accounts) are pre-financed with equity at the pre-transaction date.
Deferred Tax – for each tax entity with a loss carry forward mode other than None and a rate greater than zero, the Value at Transaction is financed at the pre-transaction date.
Liquidity Funding – the liquidity funding amount at the transaction date.
Holding – for holding structures: at the pre-transaction date the accumulated equity and shareholder-loan positions of the holding; afterwards the holding's equity contributions, purchase prices and shareholder-loan fundings into its projects.
The equity demand in each period equals the external financing need not covered by debt and shareholder loan issuance, taking into account external liquidity already drawn but not yet used.