Investor FAQ — FLP II Solar Installation

1. What asset is being financed?

The investment funds a portion of an operating rooftop solar installation located in Singapore. The installation has a total capacity of 267.85 kWp, of which 111.69 kWp is financed in this funding round. The project has been operational since September 2024.
‍

2. Who operates the project?

The project is operated by Pivot Green Asset Management Pte Ltd, a Singapore-based company responsible for operating, maintaining, and managing the solar installation and revenue collection.
‍

3. Who purchases the electricity generated?

Electricity produced by the plant is sold to Freight Links Pte Ltd, a subsidiary of Vibrant Group, under a 25-year Power Purchase Agreement (PPA). This contract provides the primary revenue stream for the asset.
‍

4. What are the sources of project revenue?

Project revenue comes from two sources:

• Electricity sold under the long-term PPA
• Renewable Energy Certificates (RECs) generated by electricity production

Both sources are included in the calculation of gross revenue used for investor payments.
‍

5. How are investor payments structured?

Investor payments consist of two components:

Fixed payment component A fixed monthly amount paid regardless of project revenue.

Variable payment component A percentage share of project gross revenue generated during the period.

These two components together form the aggregate monthly payment distributed to investors.
‍

6. What percentage of revenue do investors receive?

Investors collectively receive 35% of the project’s gross revenue, after the platform servicing fee is applied.
‍

7. What return profile does the investment target?

Based on the projected payment schedule, the investment targets an average annual cash yield of approximately 21.5% after fees, distributed through monthly payments to investors.

That is, for every $100 invested, a targeted average of $21.5 is distributed annually, split over 12 months.

When the full schedule of payments from April 2026 through March 2035 is modelled, the projected Internal Rate of Return (IRR) is an estimated 15.9% per year, based on the annual cash flows.
‍

8. What does a 15.9% IRR mean, and how does reinvestment affect it?

IRR represents the annualized return implied by the timing of all expected cash flows over the life of the investment,while assuming reinvestment of cash flows into similar projects.

Because payments are made monthly over multiple years, IRR assumes that those cash flows could be reinvested at the same rate as the IRR itself. In practice, investors may reinvest those payments at higher or lower rates depending on available opportunities.

To illustrate a few more conservative scenarios, the Modified Internal Rate of Return (MIRR) assumes reinvestment of cash flows at more moderate rates:

• If distributions were reinvested at approximately 8% per year, the resulting MIRR would be roughly 12-14% annually.
• If distributions were reinvested at approximately 5% per year, the resulting MIRR would be roughly 10-12% annually.

This helps show how the investment performs under different reinvestment assumptions while the underlying project cash flows remain unchanged.

Calculate your returns using the calculator in the ‘Performance’ tab of the listing page: https://refihub.io/investments/9

Download an investor spread sheet in the ‘Documents Tab’ of the listing page:

https://refihub.io/investments/9
‍

9. How is revenue volatility managed?

If the fixed and variable components combined fall below the target monthly payment, the project operator must make an additional Revenue Support Payment to meet the required aggregate payment level.

This mechanism is designed to stabilize investor distributions.
‍

10. What is the investment term?

Monthly payments begin in April 2026 and continue until April 2035, representing a total investment duration of approximately nine years.

At the end of the term, the tokens expire and no further payments are owed.
‍

11. What collateral supports the investment?

The solar equipment funded through the investment; including solar panels, inverters, mounting systems, and associated infrastructure. This is pledged as collateral for the benefit of token holders.

This security interest may be enforced subject to local legal requirements.
‍

12. What happens if the project operator defaults?

If the operator fails to meet payment obligations or breaches material terms of the agreement, an Event of Default may occur. In such cases, investors may be entitled to a Default Compensation Amount, designed to compensate for expected future payments.

Find full details in legal agreements and commercial terms available the ‘Documents’ tab of the listing page: https://refihub.io/investments/9
‍

13. What happens if the project is sold or refinanced?

If the project is sold, refinanced, or otherwise settled early, an Early Settlement Amount must be paid. This amount represents the contractual value of remaining payments and is distributed to token holders through the smart contract.

Full details in commercial terms available in the ‘Documents’ tab of the listing page: https://refihub.io/investments/9
‍

14. How transparent is project performance?

The operator must provide meter-verified electricity generation data and revenue records to the platform and, upon request, to investors. These reports may be delivered through API data feeds or documented reporting.
‍

15. Is the investment liquid?

Tokens can only be transferred through the platform infrastructure to verified users.

Investors should therefore expect to hold the position for the duration of the investment term.
‍

16. What are the main risks investors should consider?

Key risks include:

• Counterparty risk related to the PPA offtaker
• Solar production variability due to weather or equipment performance
• Regulatory changes affecting energy markets
• Liquidity constraints due to limited secondary trading
• Blockchain infrastructure risks associated with on-chain settlement
  ‍

17. How are payments distributed to investors?

Monthly payments are made in USDC stablecoin and distributed automatically through a smart contract on the Solana blockchain.
‍

18. Does the investment provide ownership of the solar asset?

No. Tokens represent contractual rights to receive yield payments derived from project revenue. They do not confer ownership, equity, or voting rights in the asset or the operating company.

‍