Sequoia Economic Infrastructure Income Fund Ltd.

Net Asset Value • Dec 14, 2017

National Storage Mechanism | Additional information

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

RNS Number : 2768Z

Sequoia Economic Infra Inc Fd Ld

14 December 2017

14 December 2017

Sequoia Economic Infrastructure Income Fund Limited

Net Asset Value as at 30 November 2017 and Investment Update

Ordinary Share update

SEQI's NAV increased to 101.36p per share from 100.75p per share on 31 October 2017 which arose primarily through:

·      Interest income net of expenses of 0.65p;

·      An increase of 0.17p in asset valuations;

·      A decrease of 0.22p from FX movements.

The Company's total invested portfolio represented 82.4% of the Company's NAV, with an additional £77.6m either traded but not settled or undrawn commitments. The total amount invested and committed represents 92.6% of the Company's NAV.

The portfolio comprised a total of 50 investments collectively valued at £633.6m (including accrued interest): 32 private debt investments and 18 infrastructure bonds across 8 sectors and 22 subsectors.

The annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) was 8.0% and the acquired portfolio had a weighted average life of approximately 4.8 years. Private debt investments represented 74.4% of the Company's investments and 58% of the invested portfolio comprised floating rate assets. The weighted average purchase price of the Company's acquired investments was c.95.2% of par. Investments which are pre-operational represent 16.9% of total assets.

As of the 30 November 2017, approximately 89% of NAV consisted of either Sterling assets or was hedged into Sterling. The Company has adequate resources to cover the cash costs associated with its hedging activities.

The Company's settled investment activities during November include:

·      A $35m secondary acquisition of a loan to Aquaventure, a leading water service provider through its purification and desalination technologies;

·      £8.0m-equivalent of NOK and USD bonds issued by Exmar, a leading operator of LNG and LPG vessels; and

·      An incremental £1.5m disbursement to the Clyde Street Glasgow student housing transaction.

Additionally, the Company sold the following positions following positive price movements:

·      $10m NRG 2027 bonds; and

·      $10.5m Bristow 2022 bonds.

Lastly, AUD$48.3m of the Reliance Rail bonds and $18.8m of the Global Ship Lease 2019 bonds prepaid in line with the Company's expectations.

Revolving Credit Facility ("RCF")

The Company is pleased to announce that it has repaid its previous gross leverage of £40m in full, and subsequently secured a multi-currency RCF of £100m. The tenor of the facility will be three years at a cost of LIBOR plus 2.10%, and will be used for working capital purposes and to acquire additional investments in accordance with the Company's investment policy.

The RCF will enable the Company to reduce cash drag by buying assets through the use of leverage with the intention to pay this down in the future through equity issuance.

Ordinary Portfolio Summary (15 largest settled investments)

Transaction name	Currency	Type	Ranking	Value £m(1)	Sector	Sub-sector	Yield to maturity / worst (%)
A'lienor S.A.S. (A65)	EUR	Private	Senior	39.0	Transport	Road	2.2
Hawaiki Mezzanine Loan	USD	Private	Mezz	38.4	TMT	Undersea cable	11.2
IO Data Centers	USD	Private	Senior	37.0	TMT	Data centers	9.0
Cory Environmental	GBP	Private	HoldCo	32.7	Utility	Waste-to-energy	8.5
Regard Group Mezzanine	GBP	Private	Mezz	29.0	Accomm.	Health care	12.1
Abteen Ventures	USD	Private	Senior	25.9	TMT	Data centers	8.0
Aquaventure	USD	Private	Senior	25.9	Utility	Water	7.3
Warnow Tunnel	EUR	Private	Senior	21.1	Transport	Road	6.8
Exeltium Mezzanine	EUR	Private	Mezz	20.6	Power	PPA	12.4
Natgasoline	USD	Private	Mezz	20.4	Other	Industrial infra	10.0
Welcome Break No.1 Ltd	GBP	Private	Mezz	18.3	Transport	Motorway services	8.4
NGG Finance 5.625% 2073	GBP	Public	Mezz	17.0	Utility	Elec. distribution	3.6
Terra-Gen Power TL B	USD	Private	Senior	16.8	Renewables	Solar & wind	8.2
Neoen Production	EUR	Private	HoldCo	16.6	Renewables	Solar & wind	7.0
Tracy Hills TL 2025	USD	Private	Senior	15.5	Other	Residential infra	9.3

Note (1) - excluding accrued interest

Market Summary

A total of 11 project finance transactions closed in November throughout the Company's eligible jurisdictions, worth $7.9bn in aggregate. Notable transactions during the month include:

·      The €2.26bn additional financing of the Pedemontana Veneta toll road in Italy through a senior and subordinated bond issue;  

·      The €150m loan by the European Investment Bank to build eight wind farms throughout Italy; and

·      The €115m financing of the new police headquarters in Antwerp, Belgium.

In November, the estimate of third quarter US growth was further revised to 3.3%, the highest growth rate since the third quarter of 2014. The US economy added 228,000 jobs, keeping the unemployment rate at 4.1%.

The UK economy has grown 0.5% in the three months to November, helped by an increase in exports.  During November, the Euro strengthened and the US Dollar weakened against Sterling ending the month at €1.1360 and $1.3509 respectively, and the Bloomberg USD High Yield Corporate Bond Index fell slightly to 182.7.

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

LEI: 2138006OW12FQHJ6PX91

For further information please contact:

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

Steve Cook

Dolf Kohnhorst

Randall Sandstrom

Greg Taylor

Stifel Nicolaus Europe Limited                                                +44 (0)20 7710 7600

Neil Winward

Mark Bloomfield

Gaudi Le Roux

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

James Macey White

Martin Pengelley

Elizabeth Snow 

Praxis Fund Services Limited (Company Secretary)               +44 (0) 1481 755528

Shona Darling                                                               

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 company news service from the London Stock Exchange

END

NAVBUBDDXUBBGRX