Sequoia Economic Infrastructure Income Fund Ltd.

Net Asset Value • Oct 18, 2016

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 7497M

Sequoia Economic Infra Inc Fd Ld

18 October 2016

18 October 2016

Sequoia Economic Infrastructure Income Fund Limited

Net Asset Value as at 30 September 2016 and Investment Update

Ordinary Share update

As of the 30th September 2016, the Ordinary share class held 17 private debt investments and 11 infrastructure bonds, collectively valued at £300.4m including accrued interest, with an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 8.3% and a weighted average life across the acquired portfolio of approximately 5.1 years.

Approximately 52% of the Ordinary Share portfolio comprises floating rate assets, with only two LIBOR floors above current LIBOR levels (of which one is Sterling and the other is Euros). As such, the portfolio's yield is likely to rise over time as LIBOR increases.

The investments are across the UK, Western Europe, Australia, Canada and the US and include a wide range of asset types including road, rail, utility, power, shipping, renewables and aircraft and ship leasing.

The increase in the Ordinary Share NAV (cum dividend) to 101.29p from 100.44p per share arose primarily through:

·       Interest income net of expenses of 0.43p;

·       A decline of 0.07p in asset valuations; and

·       An increase of 0.49p in FX movements.

Ordinary Portfolio Summary (10 largest settled investments)

Transaction name	Currency	Type	Ranking	Value £mm(1)	Sector	Sub-sector	Yield to maturity / worst (%)
A'lienor S.A.S. (A65)	EUR	Private	Senior	32.6	Transport	Road	4.96
Infinis Bridge	GBP	Private	HoldCo	24.0	Renewables	Solar & Wind	10.00
Exeltium Mezzanine	EUR	Private	Mezz	19.3	Power	PPA	9.14
Danaos Snr Secured 2018	USD	Private	Senior	17.1	Transport assets	Shipping	16.44
Neoen Production 1 S.A.S.U	EUR	Private	HoldCo	16.9	Renewables	Solar & Wind	6.99
IO Data Centers LLC	USD	Private	Senior	15.4	TMT	Data Centres	7.50
Biffa TL A	GBP	Private	Senior	13.1	Utility	Waste	5.90
GFL 9.875% 2021	USD	Public	Senior	12.7	Utility	Waste	6.01
Reliance Rail Finance 2018	USD	Private	Senior	11.1	Transport assets	Rolling Stock	5.96
Green Plains TL B	USD	Public	Senior	11.0	Transport	Roads	7.38

Note (1) - excluding accrued interest

C Share update

As of the 30th September 2016, the C Share class held 8 private debt investments and 2 infrastructure bonds, with one further private debt position settled, but remains undrawn. Including undrawn assets the C share class was 93.2% invested as at 30 September 2016. 

These assets are collectively valued at £133.7m including accrued interest, with an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 9.0% and a weighted average life across the acquired portfolio of approximately 3.6 years.

The investments are geographically diverse and cover the power, aircraft leasing, renewable, utility and health care sectors.

Investments in September include a senior secured bridge loan to fund the acquisition of two renewable projects from SunEdison through a private sale process.

The Investment Adviser continues to see attractive opportunities for the deployment of capital in the economic infrastructure debt sector and expects the overall yield on the C Share portfolio to remain 8% or higher.

The C Share Conversion Ratio will be announced alongside the September monthly NAV and Conversion will be effective as at 1 November 2016.

The increase in the C Share NAV (cum dividend) to 99.21p from 98.49p per share arose primarily through:

·       Interest income net of expenses of 0.26p;

·       An increase of 0.18p in asset valuations; and

·       An increase of 0.27p in FX movements.

C-Share Portfolio Summary (all settled investments)

Transaction name	Currency	Type	Ranking	Value £mm(1)	Sector	Sub-sector	Yield to maturity / worst (%)
AP Wireless Infrastructure	GBP	Private	Senior	27.0	TMT	Towers	6.63
Regard Group Mezzanine	GBP	Private	Mezz	22.6	Accommodation	Health Care	12.00
Natgasoline Senior Unsecured	USD	Private	Mezz	19.5	Other	Industrial Infrastructure	9.51
Mount Signal	USD	Private	Senior	14.9	Renewables	Solar & Wind	8.49
Longview Power TL B	USD	Private	Senior	13.2	Power	Electricity Generation	10.40
IO Data Centers LLC	USD	Private	Senior	11.6	TMT	Data Centres	7.50
Talen Energy Supply 4.6% 2021	USD	Public	Senior	11.3	Power	Electricity Generation	11.11
Peterborough Progress Health	GBP	Public	Senior	9.0	Other	PFI	5.73
Castlelake 2016-1 C	USD	Private	Mezz	3.0	Transport Assets	Aircraft	8.37
DBB Jack-up Services 2019	EUR	Private	Senior	0.5	Other	Renewable Equipment	9.6

Note (1) - excluding accrued interest

Market Summary

September was another active month for European renewable projects with the 309MW Rentel Offshore Wind Farm in Belgium reaching financial close with €850m of debt and €250m of equity.

Sterling fell sharply against the US Dollar at $1.29, and fell slightly against the Euro, ending the month at €1.15.

During September, the Bloomberg USD High Yield Corporate Bond Index rose slightly from 166 to 167.

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

Sequoia Investment Management Company

Randall Sandstrom / Steve Cook                                     Telephone 020 7079 0483 / 020 7079 0481

Stifel Nicolaus Europe Limited

Neil Winward / Mark Bloomfield / Gaudi Le Roux              Telephone 020 7710 7600

International Fund Management Limited

Chris Hickling                                                                Telephone 01481 737600

About Sequoia Economic Infrastructure Income Fund Limited

The Company is a Guernsey registered closed-ended investment company that 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.  The Company has been advised that the Shares can be considered as "excluded securities" for the purposes of the FCA rules regarding the definition and promotion of Non-Mainstream Pooled Investments (NMPIs).

This information is provided by RNS

The company news service from the London Stock Exchange

END

NAVGGGCCUUPQGAM