Sequoia Economic Infrastructure Income Fund Ltd.

Net Asset Value • Mar 14, 2018

National Storage Mechanism | Additional information

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

RNS Number : 6116H

Sequoia Economic Infra Inc Fd Ld

14 March 2018

14 March 2018

Sequoia Economic Infrastructure Income Fund Limited

("SEQI" or the "Company")

Net Asset Value as at 28 February 2018 and Investment Update

Ordinary Share update

The NAV for SEQI, the specialist investor in economic infrastructure debt, increased to 101.46p per share from 101.04p per share on 31 January 2018 which arose primarily through:

·      Interest income net of expenses of 0.62p;

·      An decrease of 0.37p in asset valuations;

·      A decrease of 0.17p from FX movements.

The Company's invested portfolio represented 91.5% of the Company's NAV, with an additional £62.0m either traded but not settled or undrawn commitments. The total portfolio, including both acquired assets and assets which the Company has committed to buy but remain unsettled or undrawn, represented 99.6% of the Company's NAV. The Company had gross leverage of £21.8m, representing c. 2.9% of NAV.

The total portfolio comprised a total of 58 investments collectively valued at £762.6m (including accrued interest): 37 private debt investments and 21 infrastructure bonds across 8 sectors and 23 subsectors.

The invested portfolio had an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 8.0% and a weighted average life of approximately 5.3 years. Private debt investments represented 76% of the total portfolio and 61% of it comprised floating rate assets. The weighted average purchase price of the Company's investments was c.95.1% of par. Investments which are pre-operational represented 16.6% of total assets.

The Company continues to view the US as a strategic target for economic infrastructure assets, with 41% of the invested portfolio consisting of investments located in the US as at 28 February 2018. The other represented regions include the UK, Europe, and Australia/New Zealand, comprising 28%, 24%, and 7% of the invested portfolio, respectively.

As at 28 February 2018, approximately 91% 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 February include:

·      A €13.7m primary loan to Hatch Copley Ltd for the acquisition and refurbishment of an Irish student accommodation building;

·      A final €5.0m disbursement to Project Warsaw, the Polish solar PV plants;

·      A €5.9m secondary purchase of Warnow Tunnel, a tunnel linking East and West Rostock, Germany;

·      A $8.6m secondary purchase of the Talen Energy Supply 10.5% 2026 bonds;

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	39.6	Transport	Roads	4.7
Hawaiki Mezzanine Loan	USD	Private	Mezz	38.7	TMT	Undersea Cable	11.6
Active Assistance Group	GBP	Private	Senior	36.4	Accomm.	Health Care	8.4
Tracy Hills TL 2025	USD	Private	Senior	34.7	Other	Residential Infrastructure	9.7
Cory Environmental	GBP	Private	HoldCo	31.3	Utility	Waste-to-energy	8.5
Aquaventure	USD	Private	Senior	25.4	Utility	Water	7.7
Abteen Ventures	USD	Private	Senior	25.4	TMT	Data Centers	8.0
Warnow Tunnel	EUR	Private	Senior	25.2	Transport	Road	6.8
NatGasoline	USD	Private	Mezz	21.0	Other	Industrial Infra	10.0
Terra-Gen Power TL B	USD	Private	Senior	20.9	Renewables	Solar & Wind	9.4
Exeltium Mezzanine	EUR	Private	Mezz	19.5	Power	PPA	9.4
Welcome Break No.1 Ltd	GBP	Private	Mezz	18.3	Transport	Motorway Services	8.5
Bulb Energy Senior Secured	GBP	Private	Senior	17.7	Utility	Electricity Supply	9.0
NGG Finance 5.625% 2073	GBP	Public	Mezz	16.8	Utility	Elec. Distribution	3.6
Clyde Street Glasgow	GBP	Private	Senior	16.0	Accomm.	Student Housing	8.0

Note (1) - excluding accrued interest

Market Summary

A total of 32 project finance transactions closed in February throughout the Company's eligible jurisdictions, worth $5.9bn in aggregate. Notable transactions during the month include:

·      A £72m primary financing of the expansion of InterGen's gas-fired Spalding CCGT Project in Lincolnshire;

·      A €650m financing for the expansion and reconstruction of the A10/A24 Neuruppin-Pankow Highway in Germany;

·      A $143m refinancing of Longroad Energy's US Solar portfolio consisting of over 300 operating solar facilities; and

·      The CAD$150m debt funding for Innergex's CAD $1.1 acquisition of Alterra Power.

In February, Q4 2017 US GDP growth was revised slightly downwards to 2.5%, for a full-year 2017 GDP growth rate of 2.3%. The US Federal Reserve has forecast three interest rate hikes in 2018, with the first expected in March.

Unemployment in the Eurozone is at its lowest level since December 2008, standing at 8.6% across the 19 countries. The UK economy appears to be on track for 0.4% growth so far for the first quarter 2018, with a large growth in business services demanded in February. During February, both the Euro and the US dollar strengthened against Sterling ending the month at €1.1292 and $1.3785 respectively

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

NAVBLGDXCBBBGIX