Sequoia Economic Infrastructure Income Fund Ltd.

Board/Management Information • Aug 12, 2022

National Storage Mechanism | Additional information

RNS Number : 7844V

Sequoia Economic Infra Inc Fd Ld

12 August 2022

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

12th Aug 2022

Sequoia Economic Infrastructure Income Fund Limited

("SEQI" or the "Company")

In accordance with the Board's succession planning arrangements, Mr Jan Pethick and Mr Jon Bridel did not stand for re-election at the AGM and have retired as non-executive directors of the Company effective 3 August 2022. The Board wishes to express its sincere thanks to Mr Pethick and Mr Bridel for their invaluable contribution to the Board since the Company's launch in 2015.

NAV update

The NAV for SEQI, the specialist investor in economic infrastructure debt, increased to 97.21 pence per share from the prior month's NAV of 96.52, (being the 30 June 2022 cum-income NAV of 98.08 less the dividend of 1.5625 pence per share declared in respect of the quarter ended June 2022), representing an increase of 0.69 pence per share.

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

	pence per share
June NAV	98.08
Interest income, net of expenses	0.65
Asset valuations FX movements, net of hedges Dividends	-0.12 0.12 -1.56
Subscriptions	0.04
July NAV	97.21

Portfolio update

During July 2022, the Company performed a share buyback programme by purchasing 6,920,616 shares at an average price of 87 pence per share. The Company also invested in a HoldCo loan for CHF 45m to finance the acquisition of a leading data centre platform in Switzerland. In addition, further loans totalling £4.1m were made to three companies.

As at 29 July, the Company had cash of £168.6m and had drawn £124.7m on its £325m revolving credit facility. The Company also had undrawn commitments on existing investments collectively valued at £190.1m. The Company's invested portfolio consisted of 63 private debt investments and 8 infrastructure bonds across 8 sectors and 26 sub-sectors. It had an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 9.8% and a cash yield of 7.4%. The weighted average portfolio life is approximately 3.9 years. Private debt investments represented 95% of the total portfolio and 51% of the portfolio

comprised floating rate assets. We expect the floating rate percentage to increase in the near future, driven by our current pipeline.

The Company's invested portfolio remains geographically diverse with 53% located across the US, 20% in the UK, 26% in Europe, and 1% 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 invested portfolio remains geographically diverse with 52% located across the US, 19% in the UK, 27% in Europe, and 2% 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 following investments settled in July:

• A HoldCo loan for CHF 45m to Stack Infrastructure, to finance the acquisition of a leading data centre platform in Switzerland;

• An additional loan of $2.9m to Paradigm Midstream LLC, a midstream oil & gas company that operates primarily in North Dakota;

• An additional loan of £1.0m to Clyde Street, a hotel construction project in Scotland; and

• An additional $0.3m disbursement to Lanthanum, a leading developer of hyperscale data centres in Virginia, USA.

The following assets sold or prepaid in July:

•  No assets sold or pre-paid in July.

The Investment Advisor continues to focus on the Company's non-performing loans, as discussed below:

•   Bulb Energy: the administrators of Simple and Bulb continue to progress on the M&A process, and we will be able to update investors once that concludes. Our loan has been marked up this month to reflect anticipated improvements in our recovery in a range of possible scenarios;

•   Salt Lake Potash: the Investment Advisor continues to work with the Receiver and other parties on the resolution of this investment. Currently, there is an active M&A process underway to sell the business, which is expected to be completed shortly, at which point additional information can be provided to investors. Our expectation is that we will receive a mixture of partial cash repayment of our loan and an "earn out" from the project. Our loan has been marked down to reflect the former but not   the latter (which could however be material); and

• Whittle School: the borrower has continued the execution of its strategy for the property. Further information will be provided as matters progress.

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	GBP	Private	Senior	63.1	Accommodation	Health care	7.89	8.59
AP Wireless US Holdco	USD	Private	HoldCo	60.7	TMT	Telecom towers	6.09	8.07
Infinis Energy	GBP	Private	Senior	58.3	Renewables	Landfill gas	5.58	6.48
AP Wireless Junior	EUR	Private	Mezz	58.0	TMT	Telecom towers	6.48	6.96
Montreux HoldCo Facility	GBP	Private	HoldCo	57.4	Accommodation	Health care	11.19	11.18
Tracy Hills TL 2025	USD	Private	Senior	56.4	Other	Residential infra	10.37	10.37
GenOn Bowline Senior	USD	Private	Senior	56.1	Power	Energy transition	9.30	9.29
Hawkeye Solar HoldCo	USD	Private	HoldCo	55.0	Renewables	Solar & wind	8.93	9.66
Brightline	USD	Private	Senior	54.0	Transport	Rail	8.52	9.34
Madrid Metro	EUR	Private	HoldCo	51.7	Transport assets	Rolling stock	1.37	6.65
Expedient Data Centers	USD	Private	Senior	51.5	TMT	Data centers	7.74	8.43
Sacramento Data Centre	USD	Private	Senior	48.3	TMT	Data centers	7.22	7.67
Lightspeed Fibre Group	GBP	Private	Senior	45.6	TMT	Broadband	10.24	11.21
Kenai HoldCo 2024	EUR	Private	HoldCo	44.2	Power	Base load	0.00	12.19
Project Nimble	EUR	Private	HoldCo	43.2	TMT	Data centers	8.58	10.04

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.

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

MSCSFSFUFEESEIA