Business Due Diligence Framework

Business Due Diligence Framework

ReFi Hub lists operating energy infrastructure.Before any listing, we validate three fundamentals:

1. The asset can generate durable cashflows typically ranging 10-15% IRR.

2. Legal and contractual rights are enforceable.

3. Risk is transparent and structurally understood.

Tokenization enables the administrative infrastructure, cashflow quality is the foundation.

Geographic Assessment (Macro Filter)

All projects are screened at the jurisdiction level before asset review.

We assess:

• Energy market economics

• Contract enforceability

• Creditor protections

• Currency stability and convertibility

• Historical precedent for similar projects

• Depth and reliability of local operators

Core Geographical Focus Regions

Brazil

• High solar irradiance and favorable generation economics

• Established operator partnerships

• Competitive installation costs

• Contracted or semi-contracted revenue visibility

Singapore

• Strong rule of law and contract enforcement

• Currency strength and lower FX volatility

• Premium REC pricing dynamics

• Institutional-grade counterparties

• Established developer ecosystem

• Strong, repeatable developer relationships

Southeast Asia (via Singapore-Based Developers)

Regional expansion is pursued selectively and only through:

• Singapore-incorporated or Singapore-regulated developers

• Operators with established governance standards

• Structures where contractual enforceability can be anchored in Singapore

Singapore functions as a beachhead jurisdiction, enabling access to broader regional energy demand growth while maintaining institutional counterparty standards.

ReFi Hub Validation Process (Project-Level)

Once a project passes the geographic filter, we conduct structured validation across five areas.

Economic Viability

• Historical or modeled kWh generation and settlement history

• Percentage of plant contracted and electricity pricing cross-checks

• Financial statement analysis

• Sensitivity to downtime or underperformance

Contract Integrity

• Revenue contracts are active and current

• Payment obligations are clearly defined

• Rights are not dependent on fragile assumptions

Foreign Exchange Exposure (If Applicable)

• Currency volatility profile reviewed

• Conversion mechanics into USDC tested

• On/off-ramp reliability assessed

Operator Assessment

• Track record in solar or energy infrastructure and prior project delivery

• Counterparty quality and incentive alignment

• Depth of Singapore and regional developer relationships (repeat operators preferred given the trust built and ability to scale)

Operational Controls & Insurance

• Insurance coverage and maintenance procedures

• Breakdown response framework

• Reporting capability (energy generation, billing and invoices)

Documentation & Execution Requirements for Solar Developers

The following documentation is collected and verified:

1. Revenue contracts and off-take agreements; confirms contractual cashflow source and enforceability with counterparties
   
   

2. Renewable Energy Credits (RECs) issuance documentation; validates secondary revenue stream where applicable
   
   

3. Historical generation data and settlement statements; demonstrates actual energy output, kWh delivered, and revenue realized over time
   
   

4. Project asset schedule and operating control documentation; identifies financed equipment, physical location, and operational oversight rights
   
   

5. Insurance policies and maintenance framework; verifies asset protection
   
   

6. Corporate formation documents and authorized signatories; establishes entity legitimacy and contractual authority
   
   

7. Financial statements; includes balance sheet, income statement, cash flow statements, and other financial records demonstrating fiscal health and performance
   
   

8. Financial structure and waterfall mechanics; details raise parameters, Net Revenue allocation, and payment schedule
   
   

9. Operational payment readiness; confirms USDC wallet setup and successful test transaction

Reach out to us for any questions

You can visit our: 
Discord investor support server.


Alternatively get in touch via email with Christian, Head of Legal & Due Dilligence team:
christian@refihub.io