Renewable Energy Fund Investment Opportunity

Renewable Energy Investment Fund

Your Gateway to Tax-Efficient Solar Investments in South Africa

About

The Renewable Energy Fund allows retail investors (individuals, trusts, companies) to invest into South Africa’s booming renewable energy industry, which has traditionally been limited to corporate and institutional investors.

Additionally, it also allows investors to do this in a tax efficient manner by harnessing the enhanced Section 12B tax deduction that will allow investors to claim up to a 250% tax deduction of the investor’s cash investment.

The unique combination of attractive project returns, the Section 12B tax deduction and a limited level of gearing at the project level offers investors the potential of superior returns for a materially de-risked investment.

This is evident in the Fund’s aim to return all cash invested to investors within 2 years of investment.

Key investment highlights:

• Minimum investment: R200,000
• Investment into a diverse set of renewable energy projects underpinned by credit worthy commercial and industrial clients
• Diversification by investing in a portfolio of projects and across technologies (solar, biomass, conduit hydro)
• Targeting return of invested capital within 2 years and pre-tax IRR of 52%
• Annuity income with bi-annual distribution of profits every year for 10 years
• Average annual cash yield around 15% based on initial investment
• Partnership with a market leading, internationally awarded Energy Service Company
• Investment fully Sharia-compliant
• Investment helps to alleviate SA’s energy crisis
• Regulated by the FSCA

Investment Characteristics:

Medium risk, Superior returns, High ESG impact

• Minimum investment of R200,000
• 10% deposit and balance during 2024 when projects are executed
• Investment term of 10-years. Early redemption possible in select cases
• Exit through bi-annual distributions over 10 years
• Risk capital recouped after 2 years through legislated tax incentives, before taking on any investment and project risk
• Distributions paid out 6-monthly based on 100% of excess cash
• Shariah compliant
• Average annual cash yield of 15%
• Targeted IRR of 52% pre-tax and 35% post tax
• Regulated by the FSCA

Renewable Energy Fund Fund Investment Mandate

The Fund will invest into a diverse set of renewable energy projects underpinned by credit worthy commercial and industrial clients that will enter into long term Power Purchase Agreements (PPAs).

This should result in a Fund that will produce long-term predictable and defensive cash returns.

Diversification will be achieved by investing across different projects and across different renewable energy technologies, such as solar, biomass and conduit hydro.

The Fund is a close-ended fund with a R200m targeted investment raise.

How To Apply

To apply to invest in this renewable investment fund opportunity, fill in this form and we will contact you thereafter.

Apply Here