Sequoia Economic Infrastructure Income Fund Ltd.

Net Asset Value • May 17, 2021

National Storage Mechanism | Additional information

RNS Number : 7362Y

Sequoia Economic Infra Inc Fd Ld

17 May 2021

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

17 May 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 102.28 pence per share from the prior month's NAV of 101.62 pence per share (being the 31 March 2021 cum-income NAV of 103.18 pence less the dividend of 1.5625 pence per share declared in respect of the quarter ended 31 March 2021), representing an increase of 0.66 pence per share.

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

	pence per share
March NAV	103.18
Dividend declared for quarter ending 31 March 2021	-1.56
Adjusted opening NAV	101.62
Interest income, net of expenses	0.58
FX movements, net of hedges	-0.06
Increase in asset valuations	0.14
April NAV	102.28

Portfolio update

The Investment Adviser, the Investment Manager, and PWC, the independent valuation agent, have continued their close analysis of the effects of COVID-19 on the Company's portfolio which also includes a market benchmarking exercise to conclude on spread and yield adjustments for each of the investments.

In summary, spreads tightening driven by credit improvements was evident across various sectors in the portfolio which resulted in modest uplifts to valuations of the assets where COVID-19 has impacted performance and are still closely monitored by the Investment Adviser. The Investment Adviser expects this trend to persist as economies continue to recover and lockdowns start to ease globally.

As at 30 April 2021, the Company had cash of £104.2m and had drawn £83.9m on its £280m Revolving Credit Facility. The Company also had undrawn commitments on existing investments collectively valued at £71.1m. The Company's invested portfolio comprised of 61 private debt investments and 11 infrastructure bonds across 8 sectors and 30 sub-sectors. It had an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 9.1% and a cash yield of 5.6%. The weighted average portfolio life is approximately 4.4 years. Private debt investments represented 93% of the total portfolio and 55% 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 11% of total assets.

The Company's invested portfolio remains geographically diverse with 48% located across the US, 19% in the UK, 26% 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.

The Company's settled investment activities during April include:

·      A $69.2m secondary loan secured on the assets of the stand-alone US domestic business of AP Wireless, a worldwide leading cell site lease investment firm. This investment complements our existing loan to the separate business housing the international operations of AP Wireless;

·      An initial $20.7m disbursement to Project Lanthanum, a leading developer of hyperscale data centres in Ashburn, Virginia; and

·      An additional $1.5m disbursement to Sunrun Safe Harbour, a portfolio of US rooftop solar systems.

The following assets sold or prepaid in April:

·      A $30m secondary loan to Flight Senior Secured, a company that operates in the e-vehicle space, predominantly based in the US but with customers around the globe; and

·      A $20m loan to vXchnge Investment, an operator of 14 data centres in the US.

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 (%)
Madrid Metro	EUR	Private	HoldCo	65.4	Transport assets	Rolling stock	1.32	5.68
Infinis Energy	GBP	Private	Senior	65.0	Renewables	Landfill gas	5.00	5.00
AP Wireless Junior	EUR	Private	Mezz	61.4	TMT	Telecom towers	4.22	6.12
Hawaiki Mezzanine Loan	USD	Private	Mezz	54.4	TMT	Undersea cable	8.57	9.60
Tracy Hills TL 2025	USD	Private	Senior	53.3	Other	Residential infra	8.11	8.11
Hawkeye Solar HoldCo	USD	Private	HoldCo	53.3	Renewables	Solar & wind	8.25	8.25
AP Wireless US Holdco	USD	Private	HoldCo	50.0	TMT	Telecom towers	6.00	6.00
Expedient Data Centers	USD	Private	Senior	46.5	TMT	Data centers	5.63	5.80
Euroports 2nd Lien 2026	EUR	Private	Mezz	44.1	Transport	Port	7.80	7.90
Care4U Senior Secured	EUR	Private	Senior	44.0	Accomm.	Health care	6.00	6.00
Scandlines Mezzanine	EUR	Private	HoldCo	43.0	Transport	Ferries	0.00	9.11
Adani Abbot HoldCo	AUD	Private	HoldCo	42.7	Transport	Port	5.62	30.08
Bannister Senior Secured	GBP	Private	Senior	41.3	Accomm.	Health care	6.54	6.54
Project Camden	EUR	Private	HoldCo	39.1	Power	Base load	7.50	7.50
Kenai HoldCo 2024	EUR	Private	HoldCo	38.4	Power	Base load	0.00	12.55

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

NAVSFLFILEFSEEI