Sequoia Economic Infrastructure Income Fund Ltd.

Net Asset Value • Apr 16, 2021

National Storage Mechanism | Additional information

RNS Number : 6616V

Sequoia Economic Infra Inc Fd Ld

16 April 2021

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES

16 April 2021

Sequoia Economic Infrastructure Income Fund Limited

("SEQI" or the "Company")

NAV update

The NAV for SEQI, the specialist investor in economic infrastructure debt, increased to 103.18 pence per share from the prior month's NAV of 102.04 pence per share representing an increase of 1.14 pence per share.

A full attribution of the changes in the NAV per share is as follows:

	pence per share
February NAV	102.04
Interest income, net of expenses	0.77
FX movements, net of hedges	0.01
Increase in asset valuations Gain from issuing shares at a premium to NAV	0.24 0.12
March NAV	103.18

Portfolio update

Spreads tightening, driven by credit improvements, was evident across various sectors in the portfolio which resulted in uplifts to valuations of the assets where Covid-19 has impacted performance and are still closely monitored by the Investment Manager.

As at 31 March 2021, the Company had cash of £124.5m and had drawn £83.9m on its £280m Revolving Credit Facility. The Company also had undrawn commitments on existing investments collectively valued at £62.7m. The Company's invested portfolio comprised of 61 private debt investments and 11 infrastructure bonds across 8 sectors and 31 sub-sectors. It had an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 9.0% and a cash yield of 5.7%. The weighted average portfolio life is approximately 4.5 years. Private debt investments represented 93% of the total portfolio and 56% of the portfolio comprised floating rate assets. The weighted average purchase price of the Company's investments was 98.9% of par. Investments which are pre-operational represented 8.1% of total assets.

The Company's invested portfolio remains geographically diverse with 47% located across the US, 19% in the UK, 27% in Europe, and 7% in Australia/New Zealand. Currently the Company is not investing in Portugal or Italy but has selectively invested in opportunities in Spain. The Company's pipeline of economic infrastructure debt investments remains strong and is diversified by sector, sub-sector, and jurisdiction. At month end, approximately 100% of the Company's NAV consisted of either Sterling assets or was hedged into Sterling. The Company has adequate resources to cover margin calls on its hedging book.

On 5 March, the Company admitted 104,513,064 new ordinary shares at a price of 105.25 pence per share, raising £110m of gross proceeds. The proceeds of the issue were used to partially repay the Company's outstanding debt on 8 March.

As announced on 10 March, the Company has published its ESG policy which is available on our website (https://www.seqifund.com/investors/documents-circulars/), setting out the criteria and principles applied to its investing activities. The Board looks forward to providing an update on progress in implementing these in the Company's 2021 annual report.

The Company's settled investment activities during March include:

·      A $40.0m purchase of Embarq corporation bonds, the third largest telecom operator in the U.S.;

·      A £33.6m loan to Trident Bidco Limited, an acquisition financing facility for specialist healthcare sites in the UK;

·      A $29.7m primary loan to Piper Preston Pty Ltd, a Salt Lake Potash mining company in Australia; and

·      An additional $3.9m disbursement to Sunrun Safe Harbour, a leader in the U.S. residential solar market.

The following assets sold or prepaid in March:

·      A €60.2m loan to Warnow Tunnel, a toll road that crosses the Warnow River in Rostock, Germany;

·      A $39.1m primary loan to Kaveh Ventures for the construction of a 96MW data centre in Ashburn, Virginia; and

·      A £28.0m primary loan to Base Student Housing, a student accommodation building in Glasgow, Scotland.

Ordinary Portfolio Summary (15 largest settled investments)

Investment name	Currency	Type	Ranking	Value £m(1)	Sector	Sub-sector	Cash-on-cash yield (%)	Yield to maturity / worst (%)
Infinis Energy	GBP	Private	Senior	65.0	Renewables	Landfill gas	5.00	5.00
Madrid Metro	EUR	Private	HoldCo	64.9	Transport assets	Rolling stock	1.30	5.40
AP Wireless Junior	EUR	Private	Mezz	59.8	TMT	Telecom towers	4.22	6.12
Hawaiki Mezzanine Loan	USD	Private	Mezz	54.5	TMT	Undersea cable	8.57	9.60
Hawkeye Solar HoldCo	USD	Private	HoldCo	53.4	Renewables	Solar & wind	8.25	8.25
Tracy Hills TL 2025	USD	Private	Senior	53.4	Other	Residential infra	8.11	8.11
Expedient Data Centers	USD	Private	Senior	46.6	TMT	Data centers	5.63	5.80
Euroports 2nd Lien 2026	EUR	Private	Mezz	43.2	Transport	Port	7.79	7.86
Care4U Senior Secured	EUR	Private	Senior	43.1	Accomm.	Health care	6.00	6.00
Adani Abbot HoldCo 2021	AUD	Private	HoldCo	42.2	Transport	Port	5.62	20.27
Scandlines Mezzanine	EUR	Private	HoldCo	42.1	Transport	Ferries	0.00	9.12
Bannister Senior Secured	GBP	Private	Senior	41.6	Accomm.	Health care	6.54	6.75
Project Camden	EUR	Private	HoldCo	38.3	Power	Base load	7.50	7.50
Kenai HoldCo 2024	EUR	Private	HoldCo	37.6	Power	Base load	0.00	12.38
Sacramento Data Centre	USD	Private	Senior	37.2	TMT	Data centers	0.00	11.00

Note (1) - excluding accrued interest

The Company's monthly investor report and additional portfolio disclosure will be made available at http://www.seqifund.com/.

LEI: 2138006OW12FQHJ6PX91

This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America.  This announcement is not an offer of securities for sale into the United States.  The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration.  No public offering of securities is being made in the United States.

For further information please contact:

Sequoia Investment Management Company                              +44 (0)20 7079 0480

Steve Cook

Dolf Kohnhorst

Randall Sandstrom

Greg Taylor

Anurag Gupta

Jefferies International Limited                                                       +44 (0)20 7029 8000

Gaudi Le Roux

Neil Winward

Tulchan Communications (Financial PR)                                    +44 (0)20 7353 4200

Martin Pengelley

Elizabeth Snow

Laura Marshall

Praxis Fund Services Limited (Company Secretary)               +44 (0) 1481 755530

Matt Falla

Katrina Rowe                                                                                       

About Sequoia Economic Infrastructure Income Fund Limited

The Company seeks to provide investors with regular, sustained, long-term distributions and capital appreciation from a diversified portfolio of senior and subordinated economic infrastructure debt investments. The Company is advised by Sequoia Investment Management Company Limited.

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