TIDMSEQI
RNS Number : 6797Q
Sequoia Economic Infra Inc Fd Ld
14 September 2017
14 September 2017
Sequoia Economic Infrastructure Income Fund Limited
Net Asset Value as at 31 August 2017 and Investment Update
Ordinary Share update
SEQI's NAV increased to 100.81 per share from 100.11 per share
on 31st July 2017 which arose primarily through:
-- Interest income net of expenses of 0.42p;
-- An increase of 0.08p in asset valuations;
-- An increase of 0.20p from FX movements.
During August, the Company's investment activities resulted in
the total invested portfolio of 75.8% of the Company's NAV, with an
additional GBP126.0m either traded but not settled or undrawn
commitments. The total amount invested and committed represents
92.5% of the Company's NAV. The Company has gross leverage of
GBP40m representing approximately 5.3% of NAV.
The portfolio held 29 private debt investments and 15
infrastructure bonds for a total of 44 investments that covered 8
sectors and 22 subsectors, and are collectively valued at GBP577.7m
including accrued interest with an annualised yield-to-maturity (or
yield-to-worst in the case of callable bonds) of 8.1% and a
weighted average life across the acquired portfolio of
approximately 4.6 years. The weighted average purchase price of the
Company's acquired investments was approximately 96.2% of par.
Investments with construction risk represent 12% of NAV.
As of the 31st August 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. Each of its FX hedge providers has credit lines
to the Company which means that the margin calls on the hedge
portfolio have been modest.
Approximately 48% of the invested portfolio comprises floating
rate assets, with only two LIBOR floor above current LIBOR levels
(EUR). As such, the portfolio's yield is likely to rise over time
as LIBOR increases. The Company expects the floating rate
proportion to exceed 50% once all outstanding trades have
settled.
The Company's settled investment activities during August
include:
-- The $15.9m Green Plains term loan B was refinanced, and the
Company participated in the refinancing with $18m.
-- An additional drawdown of roughly GBP1.1m to the Clyde Street
Glasgow student housing transaction;
-- Sold $15m of the Cheniere Corp Christi 7% 2024 bonds and $15m
of GFL Environmental 9.875% 2021 bonds, valued together at
GBP26m.
On 30th August it was announced that the Company would be
included in the FTSE 250 index, effective from 18th September
2017.
Ordinary Portfolio Summary (15 largest settled investments)
Transaction Currency Type Ranking Value Sector Sub-sector Yield
name GBPm(1) to
maturity
/ worst
(%)
A'lienor
S.A.S. (A65) EUR Private Senior 39.9 Transport Road 3.45
Data
IO Data Centers USD Private Senior 38.8 TMT centers 9.00
AP Wireless
Infrastructure GBP Private Senior 38.0 TMT Towers 6.25
Cory Environmental GBP Private HoldCo 32.7 Utility Waste-to-energy 8.50
Regard Group Health
Mezzanine GBP Private Mezz 28.6 Accommodation care 12.12
Data
Abteen Ventures USD Private Senior 27.1 TMT centers 8.00
Hawaiki Mezzanine Undersea
Loan USD Private Mezz 23.6 TMT cable 11.23
Exeltium
Mezzanine EUR Private Mezz 21.5 Power PPA 12.39
Industrial
Natgasoline USD Private Mezz 21.4 Other infra 9.99
Welcome Break Motorway
No.1 Ltd GBP Private Mezz 18.3 Transport services 8.28
Solar
Neoen Production EUR Private HoldCo 17.4 Renewables & wind 6.99
NGG Finance Electricity
5.625% 2073 GBP Public Mezz 17.1 Utility Distribution 3.54
Global Ship
Lease 10% Transport
2019 USD Public Senior 14.3 assets Shipping 11.40
NRG Energy
Inc 7.25% Electricity
2026 USD Public Senior 13.3 Power Generation 5.87
Dulles Greenway
2029 USD Public Senior 12.5 Transport Road 5.21
Note (1) - excluding accrued interest
Market Summary
A total of 43 project finance transactions closed in August
throughout the Company's eligible jurisdictions, and were worth, in
aggregate, $16.6bn.
Notable transactions include:
-- The EUR1.3bn primary financing of the Deutsche Bucht 252MW
Offshore Wind Farm, which will be connected to the larger 800MW
BorWin Beta offshore converter station;
-- The EUR900m primary financing of the Grand Est Broadband PPP
project in France, which is part of an initiative to roll out fibre
broadband to the entire country by 2022;
-- The additional $92.5m equity bridge loan to Mount Signal 3.
It was reported in August that the US economy had the strongest
quarter since 2015 with 3% GDP growth despite any meaningful policy
progress in Washington.
Confidence in the eurozone has risen to the highest level since
July 2007. The European Commission's monthly measure of economic
sentiment rose to 111.9 in August, which reflects optimism derived
particularly from improving domestic consumer spending throughout
the eurozone.
During August, both the Euro and US Dollar strengthened against
Sterling ending the month at EUR1.0854 and $1.2894 respectively,
and the Bloomberg USD High Yield Corporate Bond Index rose slightly
to 180.7.
The Company's monthly investor report and additional portfolio
disclosure will be made available at http://www.seqifund.com/.
Sequoia Investment Management Company
Randall Sandstrom / Steve Cook Telephone 020 7079 0483 / 020 7079 0481
Stifel Nicolaus Europe Limited
Neil Winward / Mark Bloomfield / Gaudi Le Roux Telephone 020 7710 7600
International Fund Management Limited
Chris Hickling Telephone 01481 737600
About Sequoia Economic Infrastructure Income Fund Limited
The Company is a Guernsey registered closed-ended investment
company that 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. The Company has been advised that the
Shares can be considered as "excluded securities" for the purposes
of the FCA rules regarding the definition and promotion of
Non-Mainstream Pooled Investments (NMPIs).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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