Loan Life Coverage Ratio

In project and infrastructure finance, the Loan Life Cover Ratio measures the expected project cash flows available to repay debt relative to the amount of debt taken out to finance the project. The LLCR at which the project covers its debt load (i.e. breaks even) and the headroom to modelled cash flows is a critical metric for project lenders and investors. The LLCR is calculated by taking total outstanding debt and dividing it by the net present value of cash flow for available debt service (discounted using the blended cost of debt)