Sequoia Economic Infrast... Share Discussion Threads

[williamcooper104] 26/1/2023 13:20

Anyone having broker problems I tried to add this morning and was told by Interactive Broker that as there wasn't a KID I could only sell HL did that a few months ago on a number of investment trusts but sorted it out

[cwa1] 26/1/2023 09:43

Just had a few at about 86p. No doubt overpaying but hopefully medium/longer term worthwhile

[cwa1] 26/1/2023 08:25

Ex a 1.72p dividend today, pay day 24/2

[cwa1] 20/1/2023 14:56

Purchase of Shares in connection with payment of Investment Adviser fees



The Company announces that, in accordance with the terms of the Investment Advisory Agreement between the Company and Sequoia Investment Management Company Limited (the "Investment Adviser"), the Investment Adviser has acquired 334,733 ordinary shares in the capital of the Company ("Ordinary Shares") at a price of 87.65 pence per Ordinary Share, in relation to fees payable for the three-month period ended 31 December 2022. The Ordinary Shares have been purchased pursuant to the Investment Advisory Agreement ("IAA"), details of which were disclosed in the prospectus published by the Company on 10 February 2020.



Following the purchase, the Investment Adviser has an interest in 4,436,464 Ordinary Shares, representing 0.25% of the Company's issued Ordinary Shares.

[catch007] 17/1/2023 11:50

I added a few more shares on today's update - a lot of the bad news re Bulb already priced in imho, NAV will gradually come back and increased dividend target enhancing yield.

[spoole5] 29/12/2022 07:55

Good to see them buying back again

[cocopah] 16/12/2022 00:19

One of our significant investments … let’s hope the Madrid Metro flooding doesn’t result in another compromised loan! 🙈🤷‍♂️

[cocopah] 14/12/2022 10:25

Decent update, no real news, and it seems as if they are holding fire on any further changes ‘mark to market’ on the Bulb loan.🤷‍;♂️8077;🏻

[cocopah] 14/12/2022 10:17

RNS Number : 6097J
Sequoia Economic Infra Inc Fd Ld
14 December 2022

Sequoia Economic Infrastructure Income Fund Limited

("SEQI" or the "Company")

Increased dividend target:

In November 2022, the annualised target dividend increased by 10% from 6.25p to 6.875p per share, with effect from the current (3rd) quarter of the 2023 financial year. The quarterly dividend with respect to the third quarter of the 2023 financial year is expected to be declared in January 2023.

The Investment Adviser expects the Company's dividend cover to improve materially for the 2023 financial year as the portfolio's floating rate investments (representing 59% of the portfolio) continue to benefit from increasing short term interest rates.

NAV update

The NAV per share for SEQI, the specialist investor in economic infrastructure debt, increased to 93.25 pence per share from the prior month's NAV per share of 92.14 pence per share, representing an increase of 1.11 pence per share.

A full attribution of the changes in the NAV per share is as follows:

pence per share

October NAV

92.14

Interest income, net of expenses

0.49

Asset valuations

FX movements, net of hedges

1.11

-0.49

November NAV

93.25

Portfolio update

As at 30 November, the Company had cash of £39.5m and had drawn £165.2m on its £325.0m revolving credit facility. The Company also had undrawn commitments on existing investments collectively valued at £66.9m. The Company's invested portfolio consisted of 62 private debt investments and 6 infrastructure bonds across 8 sectors and 27 sub-sectors. It had an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 11.0% and a cash yield of 7.1%. The weighted average portfolio life is approximately 3.7 years. Private debt investments represented 98% of the total portfolio and 59% of the portfolio comprised floating rate assets.

The Company's invested portfolio remains geographically diverse with 52.6% located across the US, 23.1% in the UK, 24.1% in Europe, and 0.2% in Australia/New Zealand. 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.

Over recent months reductions in asset values have been primarily due to increases in risk-free rates and credit spreads. The rise in risk-free rate adjustments have also increased the yield-to-maturity of floating rate investments and reduced the clean price of fixed rate assets (which also increases the yield-to-maturity). Investors are reminded that these declines are unrealised mark-to-market adjustments that should reverse over time as the investments approach their repayment date (the "pull-to-par" effect).

The following investments settled in November (excluding small loan drawings of less than $0.5m):

• An additional loan for $11.6m to Sunrun Safe Harbor HoldCo, a US-based manufacturer of solar energy equipment;

• An additional loan for £5.8m to Clyde Street, a hotel construction project in Scotland; and

• An additional Senior loan for PLN 13.3m (equivalent to $3.0m) to Green Genius to finance the construction of solar PV projects in Poland.

The following investments sold or prepaid in November:

• A full sale of Bluewater Holding BV's 10% 2023 bonds for $16.6m, a midstream oil and gas processing, storage, and offloading facility in Norway;

• A full sale of American Tanker (AMSC) 2025 bonds for $11.9m, a US-based tanker company;

• A partial sale for $8.4m of Brightline 2028 bonds, a privately owned passenger rail project in Florida; and

• A partial sale for $4.6m of Windstream 2027 bonds, a high-speed Broadband provider in the USA.


On average, the new investments have a higher ESG Score than those disposed of during the month.

There has been good progress over the past month in relation to the Company's non-performing loans:

• 4000 Connecticut Avenue (formerly Whittle School): the borrower has continued the execution of its re-capitalisation strategy for the property and the value of this loan has remained unchanged this month.

• Bulb Energy: the Investment Adviser continues with its strategy of achieving value from Bulb Energy and its parent, Simple Energy. To date, SEQI has received £14.0 million of repayments from Simple Energy. The mark on the Bulb loan has remained unchanged this month.

[williamcooper104] 08/12/2022 22:17

Yep; don't think there's going to be much impact on NAV either way now

[cocopah] 08/12/2022 21:02

Although there was a negative share price reaction, albeit small, to today’s announcement, I don’t think we’ll really know the overall position until the next update. From what I can see we’ve already had £10m back and made a revision to the NAV for a large chunk of the remainder. I guess it depends how much this technology security is worth.🤷̴5;♂️

[williamcooper104] 08/12/2022 00:15

Looks like SEQI not getting any of the £200m being paid to take Bulb even though it's a secured creditor But looks like theres a separate technology company that SEQI do have good security over and hasn't fallen into the bizarre Special Admin regime for energy companies and that's where they've recovered from

[williamcooper104] 08/12/2022 00:09

Bulb's tech assets sold to creditorhttps://www.thetimes.co.uk/article/7f0da612-7664-11ed-be91-363346a310de?shareToken=dd8d3a583454709eab86d69c600fa04dWe now own a bit of Bulb

[catch007] 25/11/2022 18:04

Interesting update. Nav reduction will return due to natural run off and an encouraging divi uplift giving income seekers an attractive yield.

[rik shaw] 25/11/2022 07:43

Dividend increasing by 10% to 6.875p p.a.

[spoole5] 25/11/2022 07:09

Divi increase going forward to 0.6875p

[cocopah] 22/11/2022 21:32

Absolutely agree with you both on that point.😎€077;🏻

[williamcooper104] 18/11/2022 21:40

Yep - upward NAV/sp more useful as a good sign of general confidence Meanwhile happy to pick up the divi

[gateside] 18/11/2022 20:54

I'll collect the 7% yield and wait!

Still better than cash in the bank.

[cocopah] 18/11/2022 20:38

I’m not so sure we will see £1.00 in the near future, these type of investments used to trade at a 5% discount in the old days (when interest rates weren’t near zero). That, and given the autumn statement, I’m not sure whether we will see much upward momentum in the NAV either.🤷R05;♂️🤔

[williamcooper104] 15/11/2022 22:40

No more surprises on credit losses and likely we get back to c£1

[gateside] 15/11/2022 22:10

I never sold and currently sitting on a buy price of 98p - which I'm confident it will reach.

[cocopah] 15/11/2022 20:23

I seem to remember a couple of senior additions (Tim Drayton and James Stewart) to the BOD to aid the risk assessment strategy earlier in the year, no doubt as a reaction to the investment strategy disappointment of Bulb. From what I understand the Octopus deal is not signed, sealed and delivered yet. This may mean we are able to get another part-payment before the situation is resolved. 🤷‍a94;️

[williamcooper104] 15/11/2022 14:16

Zero connection