Sequoia Economic Infrastructure Income Fund Ltd.

Net Asset Value • Jul 14, 2021

National Storage Mechanism | Additional information

RNS Number : 1310F

Sequoia Economic Infra Inc Fd Ld

14 July 2021

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

14 July 2021

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 103.13 pence per share from the prior month's NAV of 102.41 pence per share, representing an increase of 0.72 pence per share.

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

	pence per share
May NAV	102.41
Interest income, net of expenses	0.66
FX movements, net of hedges	0.01
Increase in asset valuations	0.05
June NAV	103.13

Portfolio update

The Investment Adviser, the Investment Manager, and PWC, the independent valuation agent, continue their close analysis of the effects of COVID-19 on the Company's portfolio. The Investment Adviser expects the previously identified uplift in valuations of the assets where COVID-19 has impacted performance to continue. This trend is expected to persist as economies continue to recover and lockdowns start to further ease globally.

As at 30 June 2021, the Company had cash of £95.5m and had drawn £83.9m on its £280m Revolving Credit Facility. The Company also had undrawn commitments on existing investments collectively valued at £73.5m. The Company's invested portfolio comprised of 64 private debt investments and 11 infrastructure bonds across 8 sectors and 30 sub-sectors. It had an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 8.9% and a cash yield of 5.9%. The weighted average portfolio life is approximately 4.3 years. Private debt investments represented 94% of the total portfolio and 53% of the portfolio comprised floating rate assets. The weighted average purchase price of the Company's investments was 98.9% of par. Investments which are pre-operational represented 13.0% of total assets.

The Company's invested portfolio remains geographically diverse with 48% located across the US, 20% 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 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 is pleased to announce that the last investment in its ESG "run-off" portfolio has repaid during the month. The investment had the lowest ESG score in the portfolio and was placed in the Company's "run-off" portfolio last year, in line with its ESG policy. The Company's ESG profile is expected to improve over time as the portfolio is on a long-term and sustainable upward trend.

On 5 July 2021, the Company published its Annual Report for the year ended 31 March 2021 which is available on its website (see results presentation). The Board was pleased to announce a total NAV return of 13.5% in the year and an improvement to the portfolio's ESG profile year on year.

The Company's settled investment activities during June include:

·      An AUD 18.0m guarantee facility to Piper Preston Pty Ltd, a Salt Lake Potash mining company in Australia;

·      A €16.4m bridge loan to Ventus, a German real estate developer largely leasing its properties to sub-national German government entities with strong credit profiles; and

·      An additional $1.8m disbursement to Kaveh Equity, a leading developer of hyperscale data centres in Ashburn, Virginia.

The following assets sold or prepaid in June:

·      An AUD 75.0m primary holdco loan to Adani Abbot, a coal export terminal located in Queensland, Australia.

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 (%)
Madrid Metro	EUR	Private	HoldCo	65.5	Transport assets	Rolling stock	1.30	5.40
Infinis Energy	GBP	Private	Senior	65.0	Renewables	Landfill gas	5.00	5.00
AP Wireless Junior	EUR	Private	Mezz	60.6	TMT	Telecom towers	4.22	6.12
Bulb Senior TL 2021	GBP	Private	Senior	54.6	Utility	Electricity supply	6.59	7.02
Hawaiki Mezzanine Loan	USD	Private	Mezz	54.5	TMT	Undersea cable	8.46	9.50
Tracy Hills TL 2025	USD	Private	Senior	53.4	Other	Residential infra	8.10	8.10
Hawkeye Solar HoldCo	USD	Private	HoldCo	53.4	Renewables	Solar & wind	8.25	8.25
AP Wireless US Holdco	USD	Private	HoldCo	50.1	TMT	Telecom towers	6.00	6.00
Expedient Data Centers	USD	Private	Senior	46.6	TMT	Data centers	5.57	5.75
Scandlines Mezzanine 2032	EUR	Private	HoldCo	44.4	Transport	Ferries	7.05	7.99
Sacramento Data Centre	USD	Private	Senior	44.1	TMT	Data centers	0.00	11.00
Euroports 2nd Lien 2026	EUR	Private	Mezz	43.7	Transport	Port	7.76	7.78
Care4U Senior Secured	EUR	Private	Senior	43.5	Accomm.	Health care	6.00	6.00
Bannister Senior Secured	GBP	Private	Senior	41.3	Accomm.	Health care	6.54	6.54
Project Camden	EUR	Private	HoldCo	38.7	Power	Base load	7.49	7.48

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

Praxis Fund Services 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

NAVFLFIRDSIVLIL