Sequoia Economic Infrastructure Income Fund Ltd.

Net Asset Value • Apr 14, 2022

National Storage Mechanism | Additional information

RNS Number : 3402I

Sequoia Economic Infra Inc Fd Ld

14 April 2022

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

14th April 2022

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 100.50 pence per share from the prior month's NAV of 100.34 pence per share, representing an increase of 0.16 pence per share. A full attribution of the changes in the NAV per share is as follows:

	pence per share
February NAV	100.34
Interest income, net of expenses	0.61
FX movements, net of hedges	0.05
Decrease in asset valuations	-0.50
March NAV	100.50

Portfolio update

With regards to the ongoing conflict in Ukraine, the Company confirms it has no investments in Russia, Belarus or the Ukraine (none of which is an eligible jurisdiction) and is compliant with the international sanctions imposed on Russia.

As at 31 March 2022, the Company had cash of £94.50m and had drawn £121.40m on its £325m revolving credit facility. The Company also had undrawn commitments on existing investments collectively valued at £66.30m. The Company's invested portfolio consisted of 66 private debt investments and 10 infrastructure bonds across 8 sectors and 29 sub‑sectors. It had an annualised yield‑to‑maturity (or yield‑to‑worst in the case of callable bonds) of 7.9% and a cash yield of 6.2%. The weighted average portfolio life is approximately 4.1 years. Private debt investments represented 95% of the total portfolio and 50% of the portfolio comprised floating rate assets. Investments which are pre‑operational represented 13% of total assets.

The Company's invested portfolio remains geographically diverse with 51% located across the US, 17% in the UK, 27% in Europe, and 5% 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 99% 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 Investment Advisor continues to focus on the Company's non-performing loans. In relation to the loans to Bulb and Salt Lake Potash, there is no material news this month, although work towards their resolution is ongoing. In the case of the loan backed by a private school in Washington DC, discussions in relation to a re-capitalisation of the asset have progressed and, when completed, will put the project on a more stable basis. The marks for Salt Lake Potash and the Washington school loan have remained approximately unchanged this month while the mark on the Bulb loan has slightly decreased. We calculate the mark through assessing a variety of different factors each month, some of which have been positive and some negative, with a net result in the mark of Bulb being slightly decreased this month.

The Company's settled investment activities during March include:

• An additional loan of £20m to Lightspeed Fibre Group Ltd, a high‑speed Broadband provider in the UK;

• An additional loan of £10m to Project Spinnaker, another high-speed Broadband provider in the UK;

• An additional loan of £1.5m to Clyde Street, a hotel construction project in Scotland; and

• An additional $0.7m disbursement to Lanthanum, a leading developer of hyperscale data centres in the USA.

No assets sold or pre-paid in March.

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 (%)
Bannister Senior Secured 2025	GBP	Private	Senior	64.7	Accommodation	Health care	7.29	7.56
Infinis Energy	GBP	Private	Senior	62.4	Renewables	Landfill gas	5.21	5.53
AP Wireless Junior	EUR	Private	Mezz	60.3	TMT	Telecom towers	6.21	6.14
Hawaiki Mezzanine Loan	USD	Private	Mezz	58.8	TMT	Undersea cable	8.32	8.67
Hawkeye Solar HoldCo	USD	Private	HoldCo	55.2	Renewables	Solar & wind	8.25	8.25
Project Camden	EUR	Private	HoldCo	54.8	Power	Base load	7.50	7.50
Madrid Metro	EUR	Private	HoldCo	53.5	Transport assets	Rolling stock	1.30	5.48
AP Wireless US Holdco	USD	Private	HoldCo	52.7	TMT	Telecom towers	6.00	6.00
Tracy Hills TL 2025	USD	Private	Senior	52.2	Other	Residential infra	8.46	8.46
Brightline	USD	Private	Senior	51.2	Transport	Rail	8.33	8.83
Lightspeed Fibre Group Ltd	GBP	Private	Senior	50.1	TMT	Broadband	6.00	6.00
Expedient Data Centers	USD	Private	Senior	49.5	TMT	Data centers	6.31	6.31
Sacramento Data Centre	USD	Private	Senior	46.3	TMT	Data centers	7.00	7.00
Project Nimble	EUR	Private	HoldCo	45.2	TMT	Data centers	8.26	8.80
Kenai HoldCo 2024	EUR	Private	HoldCo	43.0	Power	Base load	0.00	11.25

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

Sanne Fund Services Guernsey 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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