Fimodo chats to Fazil Gadzhiev – Group Head, Project & Structured Finance, Gazprombank.
What do you do?
I am doing project financing, i.e. conduct negotiations with clients, evaluate and select most attractive investment projects, analyze financial models of clients, create own quick financial models in Excel, present projects to the Investment Committee, manage the documentation process, etc. Currently I work for the third largest bank in Russia, Gazprombank, the daughter bank of Gazprom, largest gas producer in the world.
Why did you start to work in financial modelling?
When I first read Principles of Corporate Finance by Brealey & Mayers I understood that corporate finance is much more interesting then foreign-exchange risk management. And when I got an offer from an American consultant to assist him in his corporate finance activity I agreed immediately. That gave me a good ground for further exploration of project finance area. Excel gives me the possibility to present the product as you wish.
It’s like creating every time a new product by your own hands and you can see the result. It’s not just calculation that excites me, but the visuality of the model that gives me enjoyment with the work! Every model is created under different rules and format! And model audit is like making surgery in other modeller’s brain, trying to figure out what was the logic of that guy when he created these formulas, simple and elegant or overcomplicated!
What was your first job?
My first work was in the securities area. I was responsible for accumulating a stake of shares of one local machinery plant. This acquisition required negotiations with over 600 individuals, contracting all deals thru share purchase agreements. It was really fascinating exercise.
What did you study and how does it help you in financial modelling?
My first education has majors in international economics. PhD thesis was devoted to foreign-exchange risk management in firms and banks. I also had a 1-year postgraduate education “Financial Analyst”, equivalent to CFA Level 1 programme.
Describe a typical day?
9:30 – beginning, about 30-40 min. – reading media, then contacts with clients, general analysis of projects (bankability), preparing quick own financial models, reading some sections on Excel modelling or corporate finance from different books, … 20:00-21:00 – go home.
What is on your agenda for 2009-2010?
Upgrade own financial modelling skills, writing a book on project finance (including financial modelling section), develop financial modelling course for students and masters, …
What is your favourite financial modelling trick? Why?
Scrolls, other Instructor options. They allow to increase analyzing the sensitivity of the project.
How are financial models used in your organization?
I would say, widely. Financial models are used by around 100 people (project financiers, corporate financiers, private equity, oil & gas sector department).
Do you have any hidden talents?
Difficult question 
). I do like lecturing project finance, sharing experience with the younger generation.
Links:
Gazprombank: www.gazprombank.ru/eng/
LinkedIn Profile: www.linkedin.com/in/fazilgadzhiev
Hello sir,
I am very pleased that you have this medium for people to get to understand vital things on project finance.
I will like to know if I could get proper details on how to write up a project finance model for a big project(shopping mall) in Africa.
Thank you