DSCR (debt service coverage ratio)
DSCR (debt service coverage ratio) is cash flow available for debt service (CFADS) divided by principal plus interest due in a period. A DSCR of 1.20 means the project generates 20% more cash than needed to service the loan.
How Enedeal uses it
The Enedeal financial engine calculates DSCR for every repayment year. In the project finance model it marks financing as unavailable when the minimum DSCR falls below 1.20 and shows why. See the methodology.
Formula
DSCR = CFADS ÷ (principal + interest)
Preguntas frecuentes
- What DSCR do banks require?
It depends on the bank, technology and how revenues are secured (e.g. by a PPA). The 1.20 threshold in the Enedeal calculator is a starting point, not a specific bank's requirement.
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