Sequoia Economic Infra Inc Fd Ld £40 million Secured Loan Signed (7300M)

TIDMSEQI TIDMSEQC

RNS Number : 7300M

Sequoia Economic Infra Inc Fd Ld

17 October 2016

17 October 2016

Sequoia Economic Infrastructure Income Fund Limited

(the "Company")

GBP40 million Secured Loan Signed

The Board of Sequoia Economic Infrastructure Income Fund Limited is pleased to announce that on the 17 October 2016 the Company executed an 18-month GBP40 million secured loan with JP Morgan Chase Bank, London Branch ("JP Morgan").

The proceeds of the loan are to be used in or towards the making of investments in accordance with the Company's investment policy. The Investment Adviser continues to see attractive opportunities for the deployment of capital in the economic infrastructure debt sector, and expects the overall yield on the portfolio to remain eight per cent. or higher.

There is potential to increase the size of the loan in the future, once the loan proceeds have been fully deployed. In accordance with the Company's Investment Policy, any borrowings undertaken by the Company will not exceed 20 per cent. of the value of the assets of the Company less its liabilities.

Interest on the loan is charged at a rate of LIBOR plus 2.5 per cent. per annum. There are no upfront fees or commitment fees payable on the loan, however a fee is payable upon early prepayment. Under certain circumstances half of this prepayment fee may be credited against the interest expense of potential future loans between the Company and JP Morgan. The loan imposes an asset cover test on the Company and is secured by, inter alia, a charge over the bank accounts of the Company, a charge over the shares in Sequoia IDF Asset Holdings S.A. (the "Subsidiary") held by the Company and a charge on the assets of the Subsidiary.

For further information please contact:

 
 Sequoia Investment Management 
  Company 
  Steve Cook 
  Dolf Kohnhorst 
  Randall Sandstrom                   +44 (0)20 
  Greg Taylor                         7079 0480 
 Stifel Nicolaus Europe Limited 
  Neil Winward 
  Mark Bloomfield                     +44 (0)20 
  Gaudi Le Roux                       7710 7600 
 Praxis Fund Services Limited 
  (Company Secretary)              +44 (0) 1481 
  Shona Darling                          755528 
 

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

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October 17, 2016 09:00 ET (13:00 GMT)