Bright Light Solar investor update – closing date extended to 27 Feb

*This content is supplied by Bright Light Solar

Bright Light Solar VCC was recently notified that it was selected as one of six funds that a s12J Fund of Funds will be investing in this year and to cater for the closing date of the Fund of Funds, we filed a Supplementary Prospectus with the CIPC and have since received approval for the extension.

This is an extremely positive endorsement of the Bright Light Solar VCC investment case and trust that the extension is well received by prospective investors.

Please note that there is no impact on investors who have already submitted their Mandate and Application forms and deposited their funds.

Investors that have not yet signed their Mandate and Application forms, please find below updated links to these documents which are all also contained on the Bright Light Solar VCC website.

Bright Light Solar VCC Ltd:

Bright Light Solar VCC offers a low risk, non-correlated and highly attractive cash generative investment targeted at high net worth Investors. As a result of the substantial incentive offered through s12J of the Income Tax Act, the full cost of the investment is deductible against the Investor’s taxable income. This provides the Investor with an immediate benefit, equivalent to the Investor’s marginal tax rate multiplied by the investment amount.

Bright Light Solar VCC invests in Qualifying Companies focused on long-term solar and efficient energy, as well as water projects. Qualifying Companies provide customers with a fully funded, installed and maintained utility solution by signing a long-term supply agreement at a rate lower than their current tariff (immediate saving to customer). The Investor receives the cash flow after expenses and taxes have been deducted, in the form of dividends on a semi-annual basis.

Funds will be invested in a portfolio of solar and efficient energy projects, which demonstrate predictable inflation-adjusted cash flows supported by long-term electricity supply and services agreements. From more information click here.

Benefits to investors include:

  • Tax deductibility:
    • The tax deduction of the entire amount invested can be deducted against taxable income. This is limited to R2.5m for individuals and trusts, and R5m for companies;
    • The provision of IT3(b)s to assist in tax-deductibility of investment.
  • A fully managed process with no involvement required from investors;
  • Dividends:
    • Semi-annual dividend paid from year 1 and an ongoing semi-annual dividend for the full duration of the investment, which can be as long as 25 years;
    • Targeted year 1 dividend of 6.5%, growing annually (based on full deployment of capital raised).
  • Returns:
    • Targeted IRR of 17.5% after tax return on investment capital (after dividend taxes) over 25 years;
    • Targeted IRR of 21.0% after tax return on risk capital (after dividend taxes), assuming exit in year 6.
  • Lowest fees in the s12J industry (no performance fee on your tax saving);
  • Liquidity provided for investors wishing to exit in year 6 and beyond; and
  • Credit enhancement minimises credit risk (gated estate clients).

The application process is fairly straight forward and we aim to make this as seamless as possible for you as an investor.

If you are interested in investing in Bright Light Solar, please click here to get more information with regards to the mandate form. The mandate and application form includes all related FICA and relevant governance documents.

Step 1: Mandate and Application Form

  • Initial each page;
  • Sign under the Applicant section on page 5; and
  • Please complete all the requested details in Section 1, 2, 3 and 4.

Step 2: FICA Source of Funds Declaration

  • Please complete in full, date and sign the document.

Step 3: FICA Identification and verification checklist

  • Please only complete your personal details under the 1st table on the 1st page.

Step 4: ROA Caveat (No Needs Analysis) Form (declaration form stating that Bright Light and / or its representatives have not performed a financial needs analysis on your financial position)

  • Sign and complete at the bottom of the page; and
  • Mr K Shames and/or Mr J Wates will complete on behalf of the Advisor (as authorised representatives of Bright Light Solar VCC).

Step 5: Proof of Payment

  • The last step, investors will need to transfer their funds before the 27th February 2020, being the closing date of the offer;
  • The deposit must be made into the designated Bright Light Solar account administered by our independent cash custodian and fund administrator, Gael Fund Services (Pty) Ltd;
  • Bank details are provided on the Mandate and Application form.

Step 6: Email the following documents back to your Bright Light contact

  • Mandate and Application form, FICA source of funds and verification checklist;
  • ROA Caveat (no needs analysis) form;
  • Supporting FICA documents:
    • Copy of certified ID (not older than 3 months);
    • Proof of residence (not older than 3 months);
    • Proof of tax number (SARS document reflecting such); and
    • Proof of bank account (not older than 3 months).
  • Proof of payment.
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