TIDMSEQI
RNS Number : 3411W
Sequoia Economic Infra Inc Fd Ld
14 November 2017
14 November 2017
Sequoia Economic Infrastructure Income Fund Limited
Net Asset Value as at 31 October 2017 and Investment Update
Ordinary Share update
SEQI's NAV decreased to 100.75p (ex-dividend) per share from
101.24p (cum dividend) per share on 31 October 2017 which arose
primarily through:
-- Interest income net of expenses of 0.53p;
-- An increase of 0.50p in asset valuations;
-- A decrease of 0.03p from FX movements; and
-- A dividend payable of 1.50p.
During October, the Company's investment activities resulted in
the total invested portfolio of 86.1% of the Company's NAV, with an
additional GBP78.9m either traded but not settled or undrawn
commitments. The total amount invested and committed represents
96.6% of the Company's NAV. The Company had gross leverage of
GBP40m representing c.5.3% of NAV.
The portfolio held 33 private debt investments and 20
infrastructure bonds for a total of 53 investments that covered 8
sectors and 24 subsectors, and are collectively valued at GBP655.8m
(incl. accrued interest). The annualised yield-to-maturity (or
yield-to-worst in the case of callable bonds) was 7.8% and the
acquired portfolio had a weighted average life of approximately 4.7
years. Private debt investments represented 71% of the Company's
investments. The weighted average purchase price of the Company's
acquired investments was c.94.9% of par. Investments which are
pre-operational represent 15.8% of total assets.
As of the 31st October 2017, approximately 92% 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 historically been modest.
Approximately 54% of the invested portfolio comprises floating
rate assets, with only two LIBOR floors above current LIBOR levels
(EUR). As such, the portfolio's yield is likely to rise over time
as LIBOR increases.
The Company's settled investment activities during October
include:
-- A $21.7m direct origination to Sunrun, a residential solar portfolio; and
-- An incremental GBP5.6m strip of bonds for Theatre (Hospitals)
plc, which finances operating hospitals in the UK.
Additionally, the Company sold its $19.3m position of Longview
Power and the GBP38.0m investment in AP Wireless repaid in full on
its maturity date.
Ordinary Portfolio Summary (15 largest settled investments)
Transaction Currency Type Ranking Value Sector Sub-sector Yield
name GBPm(1) to
maturity
/ worst
(%)
Hawaiki Mezzanine Undersea
Loan USD Private Mezz 38.7 TMT cable 11.2
A'lienor
S.A.S. (A65) EUR Private Senior 37.8 Transport Road 3.1
Data
IO Data Centers USD Private Senior 37.7 TMT centers 9.0
Cory Environmental GBP Private HoldCo 32.7 Utility Waste-to-energy 8.5
Regard Group Health
Mezzanine GBP Private Mezz 29.0 Accommodation care 12.1
Data
Abteen Ventures USD Private Senior 26.4 TMT centers 8.0
Warnow Tunnel EUR Private Senior 21.0 Transport Road 6.8
Industrial
Natgasoline USD Private Mezz 20.8 Other infra 10.0
Exeltium
Mezzanine EUR Private Mezz 20.5 Power PPA 12.4
Welcome Break Motorway
No.1 Ltd GBP Private Mezz 18.3 Transport services 8.4
Terra-Gen
Power TL Solar
B USD Private Senior 17.1 Renewables & Wind 8.0
NGG Finance Electricity
5.625% 2073 GBP Public Mezz 17.1 Utility Distribution 3.5
Solar
Neoen Production EUR Private HoldCo 16.6 Renewables & wind 7.0
Tracy Hills Residential
TL 2025 USD Private Senior 15.7 Other Infra. 9.3
Global Ship
Lease 10% Transport
2019 USD Public Senior 14.5 Assets Shipping 5.0
Note (1) - excluding accrued interest
Market Summary
A total of 23 project finance transactions closed in October
throughout the Company's eligible jurisdictions, and were worth
$5.6b in aggregate. Notable transactions during the month
include:
-- The EUR83m additional financing of the 27.5MW Slievecallan
East and 47MW Ballyhoura onshore wind farms in Ireland;
-- The $208m private placement bond refinancing of the Windsor
Essex Parkway project in Ontario, Canada; and
-- The $200 mezzanine debt investment by AMP Capital into
Vertical Bridge, the largest private US telecommunications tower
infrastructure owner.
In October, estimates of third quarter United States economic
growth were at 3%, above the projected 2.5%. The US economy added
261,000 jobs, reducing the unemployment rate to 4.1%. Jerome Powell
has been nominated as the new Federal Reserve chairman, but is not
anticipated to change the central bank's policies, with an interest
raise rise in December still expected.
The eurozone economy has continued to grow, with a 0.6% GDP
growth during Q3, giving an annualized growth rate of 2.5%. During
October, the Euro weakened and the US Dollar strengthened against
Sterling ending the month at EUR1.1405 and $1.3283 respectively,
and the Bloomberg USD High Yield Corporate Bond Index rose slightly
to 183.2.
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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