TIDMSEQI
RNS Number : 8056E
Sequoia Economic Infra Inc Fd Ld
14 February 2018
14 February 2018
Sequoia Economic Infrastructure Income Fund Limited
("SEQI" or the "Company")
Net Asset Value as at 31 January 2018 and Investment Update
Ordinary Share update
The NAV for SEQI, the specialist investor in economic
infrastructure debt, increased to 101.04p per share from 100.31p
(ex-dividend) per share on 29 December 2017 which arose primarily
through:
-- Interest income net of expenses of 0.60p;
-- An increase of 0.29p in asset valuations;
-- A decrease of 0.16p from FX movements.
The Company's invested portfolio represented 87.1% of the
Company's NAV, with an additional GBP79.6m either traded but not
settled or undrawn commitments. The total portfolio, including both
acquired assets and assets which the Company has committed to buy
but remain unsettled or undrawn, represented 97.6% of the Company's
NAV.
The total portfolio comprised a total of 54 investments
collectively valued at GBP745.1m (including accrued interest): 34
private debt investments and 20 infrastructure bonds across 8
sectors and 23 subsectors.
The total portfolio had an annualised yield-to-maturity (or
yield-to-worst in the case of callable bonds) of 7.9% and a
weighted average life of approximately 5.2 years. Private debt
investments represented 75% of the total portfolio and 61% of it
comprised floating rate assets. The weighted average purchase price
of the Company's investments was c.95.3% of par.
Investments which are pre-operational represented 15.9% of total
assets.
As at 31 January 2018, approximately 93% 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.
The Company's settled investment activities during January
include:
-- A GBP36.0m primary loan to Active Assistance, provides
specialised health care throughout the UK;
-- An additional $27.0m disbursement to Tracy Hills, the
residential infrastructure project in Northern California;
-- An additional $7.4m loan to Terra-Gen, a renewable energy
company focused on utility-scale wind, solar and geothermal
generation;
-- An additional EUR4.8m disbursement to Project Warsaw, a portfolio of wind farms in Poland;
-- Primary participations of $2.0m and $5.0m of Apollo Aviation 2018-1B and 2018-1C;
-- An additional GBP1.1m disbursement to the Clyde Street
Student Housing development in Glasgow.
Lastly, three investments repaid during the month of January in
line with the Company's expectations:
-- IO Data Centres which prepaid its amount due in full equal to $50.0m;
-- The Regard Mezzanine and HoldCo healthcare loans worth GBP24.4m; and
-- The $11.2m of All Aboard Florida bonds were also called.
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 39.2 Transport Roads 5.5(2)
Hawaiki Mezzanine Undersea
Loan USD Private Mezz 37.3 TMT Cable 11.6
Active Assistance Health
Group GBP Private Senior 36.4 Accomm. Care 8.4
Tracy Hills Residential
TL 2025 USD Private Senior 33.8 Other Infrastructure 9.7
Cory Environmental GBP Private HoldCo 31.3 Utility Waste-to-energy 8.5
Water
Aquaventure USD Private Senior 24.7 Utility & Waste 7.7
Abteen Ventures USD Private Senior 24.7 TMT Data Centers 8.0
Warnow Tunnel EUR Private Senior 20.7 Transport Roads 6.8
Terra-Gen
Power TL Solar
B USD Private Senior 20.3 Renewables & Wind 9.4
Industrial
NatGasoline USD Private Mezz 19.4 Other Infra 10.0
Exeltium
Mezzanine EUR Private Mezz 19.3 Power PPA 9.4
Welcome Break Motorway
No.1 Ltd GBP Private Mezz 18.3 Transport Services 8.5
Bulb Energy Electricity
Senior Secured GBP Private Senior 17.7 Utility Supply 9.0
NGG Finance Elec.
5.625% 2073 GBP Public Mezz 17.1 Utility Distribution 3.4
Solar
Neoen Production EUR Private HoldCo 15.3 Renewables & Wind 7.0
Note (1) - excluding accrued interest
Note (2) - Yield-to-date of expected refinancing;
Market Summary
A total of 27 project finance transactions closed in January
throughout the Company's eligible jurisdictions, worth $7.4bn in
aggregate. Notable transactions during the month include:
-- A CAD $411m primary financing of development of a new patient
care tower in Michael Garron Hospital in Toronto;
-- A GBP40m term loan for the construction of new student housing in Birmingham;
-- A EUR164m PPP contract given by the City of Cologne to
refurbish and expand four schools; and
-- The EUR135m refinancing of Lestenergia's 144MW Portuguese
wind portfolio, designed to pay back existing debt and improve the
company's liquidity position.
The equity markets experienced extreme volatility in February,
with US VIX more than doubling and the Dow falling 10%. This was
triggered by inflationary fears, increasing the risk of the Fed
raising rates faster than expected. Equity price weakness has not,
however, spilled over to the credit markets with the US CDX high
yield index falling by only 1.8% during the same period. Moreover,
we have not noticed any material drop in our asset values, as
infrastructure debt has a low correlation to the market and is
defensive in nature.
The Company's monthly investor report and additional portfolio
disclosure will be made available at http://www.seqifund.com/.
LEI: 2138006OW12FQHJ6PX91
For further information please contact:
Sequoia Investment Management Company +44 (0)20 7079 0480
Steve Cook
Dolf Kohnhorst
Randall Sandstrom
Greg Taylor
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Neil Winward
Mark Bloomfield
Gaudi Le Roux
Tulchan Communications (Financial PR) +44 (0)20 7353 4200
James Macey White
Martin Pengelley
Elizabeth Snow
Praxis Fund Services Limited (Company Secretary) +44 (0) 1481 755528
Shona Darling
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 company news service from the London Stock Exchange
END
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