TIDMSEQI
RNS Number : 7421A
Sequoia Economic Infra Inc Fd Ld
14 September 2018
14 September 2018
Sequoia Economic Infrastructure Income Fund Limited
("SEQI" or the "Company")
Net Asset Value as at 31 August 2018 and Investment Update
Ordinary Share update
The NAV for SEQI, the specialist investor in economic
infrastructure debt, increased to 101.17p from the prior month's
NAV of 100.46p per share. The changes in NAV arose primarily
through:
-- Interest income net of expenses of 0.66p;
-- An increase of 0.04p in asset valuations;
-- An increase of 0.01p from FX movements.
On 09 August 2018, the Company resolved to exercise the GBP50
million accordion tranche of its existing multi-currency Revolving
Credit Facility. The RCF and the accordion will continue to be used
to fund the Company's strong, diversified pipeline of economic
infrastructure debt investments and for working capital
purposes.
During the month, the Company drew a total of GBP16.0m from the
accordion, resulting in gross leverage of GBP116.0m as at 31
August. The Company's total net assets after deducting net
borrowings were therefore GBP831.4m at month end. The Company also
had undrawn commitments and two additional investments in the
process of settlement, collectively valued at GBP150.1m.
The Company's invested portfolio comprised of 40 private debt
investments and 18 infrastructure bonds collectively valued at
GBP888.7m (including accrued interest). The investments were
diversified across 8 sectors and 24 sub-sectors and had an
annualised yield-to-maturity (or yield-to-worst in the case of
callable bonds) of 8.6% and a weighted average life of
approximately 5.0 years. Private debt investments represented 85.2%
of the total portfolio and 64.2% of the portfolio comprised
floating rate assets. The weighted average purchase price of the
Company's investments was c.97.0% of par. Investments which are
pre-operational represented 11.8% of total assets.
The Company's invested portfolio remains geographically diverse
with 42% located across the US, 17% in the UK, 29% in Europe, and
12% in Australia/New Zealand. Currently the Company is not
investing in Italy but has invested in selective opportunities in
Spain.
As at 31 August 2018, the Company's NAV consisted entirely 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 August
include:
-- A EUR20.0m primary loan to Mainsite Logistik Holding, a
logistics service provider to market leading industrial companies
in Germany;
-- A $10.0m primary loan to Midcoast Energy, a natural gas liquids pipeline in Texas;
-- An initial disbursement of $4.0m to Whittle Schools for the
development of a private school in Washington D.C;
-- An additional disbursement of EUR2.4m to Native Dancer, a
student accommodation building in Leiden, The Netherlands; and
-- An additional secondary purchase of NOK 8.0m Exmar 9.02% 2019 bonds.
The investments that prepaid or were sold during August
include:
-- The expected GBP26.9m prepayment of the Bulb Energy Term Loan; and
-- The expected $9.1m refinancing of the Invenergy Term Loan B.
Ordinary Portfolio Summary (15 largest settled investments)
Investment name Currency Type Ranking Value Sector Sub-sector Yield
GBPm(1) to maturity
/ worst
(%)
Hawaiki Mezzanine Undersea
Loan USD Private Mezz 54.9 TMT cable 10.2
Salt Creek Midstream USD Private Senior 50.2 Utility Midstream 6.8
Tracy Hills TL Residential
2025 USD Private Senior 46.3 Other Infra 10.3
Scandlines Mezzanine
2032 EUR Private HoldCo 44.7 Transport Ferries 6.7
Adani Abbot Holdco
2021 AUD Private HoldCo 41.6 Transport Port 6.8
Bizkaia TL 2021 EUR Private HoldCo 35.8 Power Elec. Generation 7.7
Solar &
Sunrun Hera 2017-B USD Private Mezz 30.9 Renewables Wind 7.3
Cory Environmental GBP Private HoldCo 30.6 Utility Waste-to-energy 8.5
Aquaventure USD Private Senior 27.0 Utility Water 8.3
Abteen Ventures USD Private Senior 26.9 TMT Data Centers 7.6
Warnow Tunnel EUR Private Senior 25.4 Transport Road 6.9
Terra-Gen Power Solar &
TL B USD Private Senior 23.7 Renewable Wind 10.4
Panda Patriot USD Private Senior 22.4 Power Elec. Generation 8.6
Clyde Street Student
Glasgow GBP Private Senior 21.5 Accomm. Housing 8.2
Project Warsaw Solar &
2 EUR Private Senior 19.5 Renewables Wind 5.9
Note (1) - excluding accrued interest
Market Summary
A total of 41 project finance transactions closed in August
throughout the Company's eligible jurisdictions, worth $10.1bn in
aggregate. Notable transactions during the month include:
-- A $650m financing of the development of the South Field
Energy Gas-Fired Power Plant in Ohio, USA;
-- A $1.250bn financing of the acquisition of a 50% stake in the
900MW Triton Knoll Offshore Wind Farm off the coast of England;
and
-- A CAD $4,300m financing of the acquisition of the Canadian
energy solutions company Enercare.
The US economy added 201,000 jobs in August while the
unemployment rate remained steady at 3.9%. The economy grew at an
annualized pace of 4.2% in Q2 2018, nearly doubling the 2.2% rate
seen in Q1.
Eurozone economic growth has been revised up to 0.4% for Q2
2018, for an annualized rate of 1.5%, and is expected to grow only
moderately in Q3 2018.
The UK economy is projected to maintain its 0.4% growth rate for
Q3 2018, with continued uncertainty about Brexit.
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 755530
Matt Falla
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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