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Key Definitions
A searchable, filterable glossary in clear layman’s language.
Glossary
Every term, in plain language
A searchable, filterable glossary of the terms used throughout this memorandum. Search by keyword or filter by category.
Showing 18 of 18 definitions
- Asset-holding company Structure
- A company set up to own one or more specific energy assets, keeping them ring-fenced from other activities.
- Capital recycling Investment
- Releasing capital from a stabilised asset and reinvesting it into new projects, so the platform can grow repeatedly.
- Cashflow waterfall Cashflow
- The set order in which project revenue is applied — each level must be paid before the next receives anything.
- Cession Security
- The transfer of rights (such as rights to a bank account or a contract) to the Security Trustee as security for investors.
- CIPC Structure
- The Companies and Intellectual Property Commission — the South African body where companies are registered and their relationships recorded.
- Holding company Structure
- A company that owns the assets and other companies rather than operating them directly. It holds value on behalf of investors.
- Mezzanine capital Investment
- Capital that ranks between senior debt and equity, carrying more risk and a higher return than senior debt.
- Offtake agreement Investment
- A contract under which a buyer agrees to purchase the energy an asset produces, underpinning its revenue.
- Operating company Structure
- The company that actually builds and runs the energy projects. Here, that is Utility Consulting Solutions.
- Ordinary equity Investment
- The most junior form of capital. It is last to be paid but carries the full residual upside of the portfolio.
- Pledge Security
- A form of security where an asset, such as shares, is committed as collateral without transferring ownership unless there is a default.
- Preferred equity Investment
- Equity that receives its distributions ahead of ordinary equity, usually at an agreed preferential rate.
- Reserve account Cashflow
- Cash set aside to cover future obligations, such as debt payments or maintenance, protecting against shortfalls.
- Residual Cashflow
- What remains after all higher-priority obligations are paid. UtCS holds the residual at the bottom of the waterfall.
- Ring-fencing Structure
- Keeping a project’s assets and liabilities separate so that problems in one project do not spill over into others.
- Security package Security
- The collection of collateral — shares, bank accounts, contracts and assets — pledged to protect investors.
- Security Trustee Security
- An independent party that holds the security (collateral) on behalf of all investors and can enforce it if obligations are not met.
- Senior debt Cashflow
- Debt that ranks first for repayment and carries the strongest security, and therefore the lowest risk and return.
Executive Takeaway
Every term in this memorandum is defined in plain language so no reader is excluded by jargon.
Why this matters to UtCS
Clear definitions make the platform accessible to a wider range of investors and advisers.
Why this matters to investors
A shared vocabulary reduces misunderstanding and speeds up diligence.