TIDMSEQI
RNS Number : 0172S
Sequoia Economic Infra Inc Fd Ld
12 March 2021
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
IN OR INTO THE UNITED STATES
12 March 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 102.04 pence per share from the
prior month's NAV of 101.23 pence per share representing an
increase of 0.81 pence per share.
A full attribution of the changes in the NAV per share is as
follows:
pence per
share
--------------------------------- ---------
January NAV 101.23
Interest income, net of expenses 0.57
FX movements, net of hedges -0.13
Increase in asset valuations 0.37
February NAV 102.04
================================= =========
Portfolio update
Spreads tightening, driven by credit improvements, was evident
across various sectors in the portfolio which resulted in uplifts
to valuations of the assets where Covid-19 has impacted performance
and are still closely monitored by the Investment Manager.
As at 26 February 2021, the Company had cash of GBP104.7m and
had drawn GBP208.8m on its GBP280m Revolving Credit Facility. The
Company also had undrawn commitments on existing investments
collectively valued at GBP119.1m. The Company's invested portfolio
comprised of 62 private debt investments and 10 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 8.7% and a cash yield of 5.5%. The weighted average portfolio
life is approximately 4.5 years. Private debt investments
represented 95% of the total portfolio and 61% of the portfolio
comprised floating rate assets. The weighted average purchase price
of the Company's investments was 97.3% of par. Investments which
are pre-operational represented 8.2% of total assets.
The Company's invested portfolio remains geographically diverse
with 46% located across the US, 19% 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.
On 3 March, the Company announced a Placing of new ordinary
shares raised GBP110m of gross proceeds. The proceeds of the issue
were used to partially repay the Company's outstanding debt on 8
March. The effects of this issue will be reflected in the March
investor report.
As announced on 10 March, the Company is pleased to publish its
ESG policy, setting out the criteria and principles applied to its
investing activities. The Board looks forward to providing an
update on progress in implementing these in the Company's 2021
annual report.
The Company's settled investment activities during February
include:
-- A EUR45.0m primary Holdco loan to Camden B.V., a holding
company with stakes in a portfolio of CCGT power assets in the
Netherlands;
-- An additional disbursement of $2.7m to Prime Data Centres for
the development of a data centre campus in Sacramento,
California;
-- An additional $1.6m disbursement to Sunrun Safe Harbour, a
leader in the US residential solar market; and
-- An additional $0.6m disbursement to Bourzou Equity, a company
created for a data centre in Virginia.
The following assets sold or prepaid in February:
-- A $15.0m combined secondary acquisition of NewCold USA's
Burley and Tacoma mezzanine loans, fully automated cold storage
facilities with anchor tenants on long-term contracts;
-- A EUR39.0m primary loan to Bizkaia Holdings, an operational
CCGT power plant in the Basque region of Spain;
-- A $0.1m term loan to Castlelake, an aircraft leasing company.
Ordinary Portfolio Summary (15 largest settled investments)
Investment name Currency Type Ranking Value Sector Sub-sector Cash-on-cash Yield
GBPm yield to maturity
(1) (%) / worst
(%)
Transport Rolling
Madrid Metro EUR Private HoldCo 66.0 assets stock 1.30 5.40
Landfill
Infinis Energy GBP Private Senior 65.0 Renewables gas 5.00 5.00
AP Wireless Telecom
Junior EUR Private Mezz 60.9 TMT towers 4.22 6.12
Hawaiki Mezzanine Undersea
Loan USD Private Mezz 53.9 TMT cable 8.54 9.56
Tracy Hills TL Residential
2025 USD Private Senior 52.8 Other infra 8.11 8.11
Warnow Tunnel EUR Private Senior 52.1 Transport Road 1.34 1.34
Expedient Data
Centers USD Private Senior 46.1 TMT Data centers 5.68 5.85
Euroports 2nd
Lien 2026 EUR Private Mezz 43.9 Transport Port 7.80 7.88
Care4U Senior Health
Secured EUR Private Senior 43.8 Accomm. care 6.00 6.00
Scandlines
Mezzanine EUR Private HoldCo 42.8 Transport Ferries 0.00 9.13
Adani Abbot
HoldCo
2021 AUD Private HoldCo 42.4 Transport Port 5.62 15.80
Bannister Senior Health
Secured GBP Private Senior 41.6 Accomm. care 6.54 6.75
Project Camden EUR Private HoldCo 39.0 Power Base load 7.50 7.50
Hawkeye Solar Solar
HoldCo USD Private HoldCo 38.5 Renewables & wind 8.25 8.25
Jetpeaks HoldCo Energy
2027 USD Private HoldCo 37.9 Power transition 7.48 8.02
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.
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END
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