European infrastructure and construction group, structured around syndicated bank financing subject to strict covenants (Leverageable EBITDA, Net Debt, leverage ratios).

The organization, transitioning from a geographical structure to a Business Unit structure, managed consolidation and covenant indicator calculations largely manually, with error risks and timelines incompatible with contractual requirements. Finance leadership lacked visibility on BU performance.

Before technology selection, the priority was clarifying contractual definitions and structuring the target reporting model.

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The critical challenge was contractual compliance with lenders: how to guarantee reliable, traceable production of covenant indicators (Leverageable EBITDA, Net Debt, leverage ratios) according to exact financing contract definitions, under penalty of technical default?

In a context of significant syndicated financing, any error in covenant calculation could trigger major consequences (debt acceleration, forced renegotiation). Manual adjustments and complex contractual definitions created unacceptable risk exposure.

The objective: build a system enabling:

• Automated indicator calculations according to precise contractual definitions

• Documentation and tracing of each adjustment for banks and auditors

• Reporting production within contractual deadlines with zero tolerance for errors

We began with meticulous analysis of financing contracts to extract exact definitions of each covenant indicator. Contractual definitions contained subtleties (specific adjustments, exclusion scopes) not correctly reflected in existing manual calculations.

The engagement encompassed:

• Translating contractual definitions into automated calculation rules, validated with Treasury teams and banking contacts

• Structuring a multi-tier consolidation model producing indicators at each level required by contracts

• Designing audit documentation tracing each adjustment, anticipating lender and auditor inquiries

The system also supported the group's reorganization toward a Business Unit structure, integrating new management dimensions.