Sequoia Economic Infrastructure Income Fund Ltd.

Net Asset Value • Feb 14, 2022

National Storage Mechanism | Additional information

RNS Number : 5013B

Sequoia Economic Infra Inc Fd Ld

14 February 2022

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

14th February 2022

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 100.31 pence per share from the prior month's NAV of 100.00 pence per share, (being the 31 December 2021 cum-income NAV of 101.56 less the dividend of 1.5625 pence per share declared in respect of the quarter ended 31 December 2021), representing an increase of 0.31 pence per share.

	pence per share
December NAV	101.56
Interest income, net of expenses	0.47
FX movements, net of hedges Dividends	0.11 -1.56
Decrease in asset valuations	-0.27
January NAV	100.31

Portfolio update

As at 31 January 2022, the Company had cash of £111.6m and had drawn £120m on its £325m revolving credit facility. The Company also had undrawn commitments on existing investments collectively valued at £96.6m. The Company's invested portfolio consisted of 65 private debt investments and 11 infrastructure bonds across 8 sectors and 29 sub‑sectors. It had an annualised yield‑to‑maturity (or yield‑to‑worst in the case of callable bonds) of 8.3% and a cash yield of 5.9%. The weighted average portfolio life is approximately 4.2 years. Private debt investments represented 94% of the total portfolio and 49% of the portfolio comprised floating rate assets. Investments which are pre‑operational represented 11% of total assets.

The Company's invested portfolio remains geographically diverse with 49% located across the US, 16% in the UK, 30% 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 Investment Advisor continues to focus on the Company's non-performing loans. In relation to the loans to Bulb and Salt Lake Potash, there is no material news this month, although work towards their resolution is ongoing. In the case of the loan backed by a private school in Washington DC, discussions in relation to a re-capitalisation of the asset continue and, if successful, will put the project on a more stable basis. In each case, the loans' marks this month remain approximately unchanged.

The Company's settled investment activities during January include:

• A purchase of $50.0m for Generation Bridge, an acquisition facility for a non-coal conventional power asset portfolio in the USA;

• A purchase of £30.0m for Lightspeed Fibre Group Ltd, a high-speed Broadband provider in the UK;

• An additional loan of €4.3m to Project Ventus, a German real estate developer;

• An additional $4.3m loan to Sunrun Radcliffe, a manufacturer of solar energy equipment in the USA;

• An additional loan of £0.9m to Clyde Street, a newbuild hotel in Scotland;

• An additional $0.6m disbursement to Lanthanum, a leading developer of hyperscale data centres in the USA.

The following assets sold or prepaid in January:

• A loan of £21.3m to Elysium Healthcare Holdings 3 Ltd, an accommodation provider in the healthcare industry, based in the UK;

• A sale of £1.8m on our remaining position of Heathrow Finance PLC bonds.

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	65.2	Accommodation	Healthcare	6.80	7.06
Infinis Energy	GBP	Private	Senior	63.8	Renewables	Landfill Gas	5.09	5.23
AP Wireless Junior	EUR	Private	Mezz	59.7	TMT	Telecom Towers	6.21	6.14
Hawaiki Mezzanine Loan	USD	Private	Mezz	56.8	TMT	Undersea Cables	8.42	9.13
Hawkeye Solar HoldCo	USD	Private	HoldCo	55.6	Renewables	Solar & Wind	8.01	7.75
Project Camden	EUR	Private	HoldCo	54.5	Power	Base load	7.47	7.42
Madrid Metro	EUR	Private	HoldCo	53.9	Transport Assets	Rolling Stock	1.28	5.10
Brightline	USD	Private	Senior	52.1	Transport	Rail	8.00	8.00
AP Wireless US HoldCo	USD	Private	HoldCo	51.5	TMT	Telecom Towers	6.00	6.00
Tracy Hills TL 2025	USD	Private	Senior	51.1	Other	Residential Infra	8.11	8.10
Expedia Data Centers	USD	Private	Senior	48.4	TMT	Data centers	5.59	5.59
Project Nimble	EUR	Private	HoldCo	45.6	TMT	Data centers	8.10	8.23
Sacramento Data Centre	USD	Private	Senior	45.3	TMT	Data centers	7.00	7.00
Kenai HoldCo 2024	EUR	Private	HoldCo	42.6	Power	Base load	-	10.89
Euroports 2nd Lien 2026	EUR	Private	Mezz	42.6	Transport	Port	7.75	7.63

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.

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