Sequoia Economic Infrast... Share Discussion Threads

[cocopah] 22/10/2021 07:23

An update on Bulb would be good too.👍ㇿ5;

[cwa1] 19/10/2021 06:26

19 October 2021

Sequoia Economic Infrastructure Income Fund Limited

(the "Company")

Dividend Declaration

Interim Dividend for the Period Ended 30 September 2021

The Directors of the Company have declared that an interim dividend of 1.5625p per share will be payable to holders of Ordinary Shares as follows in respect of the three-month period ended 30 September 2021:


Ex-Dividend Date: 28 October 2021
Record Date: 29 October 2021
Scrip Reference Price 4 November 2021
Announced:
Deadline for Scrip Elections: 19 November 2021
Payment/Allotment Date: 3 December 2021
Dividend per Ordinary 1.5625 pence per share
Share:

[cocopah] 14/10/2021 16:16

Decent incremental increase in the NAV to 102.94 and good to see the improvement in Talen as #Chucko1 observed. Not so good on the Bulb investment although fully secured so we shall see:)

The Company's settled investment activities during September include:

· An additional $35.0m to Brightline, a privately owned passenger rail project in Florida;

· A $50m loan to Perc HoldCo, to finance the acquisition of energy efficiency assets linked to steel production at two steel mills in the USA.



The following assets sold or prepaid in September:

· A full sale of £12.1m of Heathrow 2027 bonds, a UK Airport;

· A partial £5.0m sale of American Shipping Company (AMSC) 2025 bonds, a US-based tanker company;

· A partial £6.0m sale of Navigator Holdings 2025, a US-based specialist shipping company;

· A $31.5 primary loan to Sunrun Hera, a US-based manufacturer of solar energy equipment;

Heathrow 2027, AMSC 2025 and Navigator Holdings 2025 were sold to mitigate any breach to the fixed-to-floating rate ratio.

[cocopah] 30/9/2021 07:21

#chucko1 Good to know that there has been a recent uptick in the performance of the bonds (I couldn’t find anything positive on Talen, so defer to your knowledge - edited posts to take the heat out of them). Assuming that the exposure is only $21m I agree that even a total loss wouldn’t impact SEQI hugely. The share price had overshot the average recent premium to NAV so perhaps a combination of both? Previous dips have bottomed at 1.04ish. Thinking about interest rate rises, that focus has drifted a bit recently, there’s been more debate on when to reduce tapering but even that’s a few months off. Next update is in 10 working days so perhaps some inkling then.🤔

[chucko1] 29/9/2021 21:46

The fall in the share price coincides with a RISE in the value of the TALEN bonds! The bonds had fallen a lot (from 90% to 40% from the end of May to the end of August) but have now risen to 56%. $21mn represents 0.8% of the market cap, so either this is an absurd overreaction or there are other worries. Like higher interest rates looming (some may say).

In any event, they will have marked these bonds to market and assuming a recovery of perhaps 20% upon default, the further possible loss is around 0.25% of the market cap.

[cocopah] 29/9/2021 19:31

Found 3 SEQI investments in Talen Energy (6.5% 2024 and 6.5% 2025 and 10.5% 2026). Hoping the last one wasn’t priced to reflect the deterioration in risk! Anyway the total investment is c$21m (not sure if/how they are secured).

It would be good if the next monthly update gave investors a more fulsome picture.

[cocopah] 29/9/2021 19:04

The current situation looks poor for Talen with further investigation (Talen are $4m in debt and it’s bonds have been downgraded). I don’t think it’s a game-changer at all for SEQI, however a default will hurt somewhat.🤷‍♂️

hxxp://ieefa.org/colstrip-operator-talen-falls-4-billion-into-debt-bonds-downgraded/

[cocopah] 29/9/2021 18:41

I would imagine that apart from overshooting the average c5% premium the Talen issues aren’t helping.⬇A039;

hxxps://news.bloomberglaw.com/bankruptcy-law/talen-energy-bonds-drop-on-earnings-outlook-debt-concerns

[nerja] 24/9/2021 13:13

Something not quite right with this of late, is there a large seller bailing?

[chucko1] 23/8/2021 13:55

No you couldn't - we're all hooked, and I reckon you know that!

[mach100] 22/8/2021 21:14

haha Coco I sure did. I only wish I woke up and it was true :) I could give up investing :)

[cocopah] 21/8/2021 19:28

Mach100 Lol edited original post to the correct ‘pence’ not ‘pounds’ … you got the gist though.

[mach100] 14/8/2021 17:06

Cocopah a leap in NAV from 103.2p to £101.86 is not marginal! One of the biggest jumps in history I would say. Maybe it bought Greenland for Trump :P

[cocopah] 13/8/2021 15:44

Latest NAV update released at close of business today. Following divi the NAV increased marginally to 101.86p.

The Company's settled investment activities during July included:

· A $5.0m bond of Inmarsat, the largest UK satellite communications company;

· An additional £2.7m loan to Lloyds Development Limited, a hotel development in Glasgow; and

· A €28.4m takeout financing to Ventus, a German real estate developer specializing in social infrastructure in Germany.

The following assets sold or prepaid in July:

· A €16.4m bridge loan to Ventus, a German real estate developer largely leasing its properties to subnational German government entities with strong credit profiles.

[cocopah] 14/7/2021 17:27

I think we might be at the top of the wave as far as the share price is concerned as we are now valued at a premium of 9%. The new investments are not power related (good) and settling the coal related one is good from an ESG perspective.

[cwa1] 14/7/2021 06:15

Modest increase in NAV:-



NAV update

The NAV for SEQI, the specialist investor in economic infrastructure debt, increased to 103.13 pence per share from the prior month's NAV of 102.41 pence per share, representing an increase of 0.72 pence per share.

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


pence per
share
--------------------------------- ---------
May NAV 102.41
Interest income, net of expenses 0.66
FX movements, net of hedges 0.01
Increase in asset valuations 0.05
June NAV 103.13
================================= =========

[chucko1] 06/7/2021 08:53

"SEQI has demonstrated the considerable resilience of its portfolio and the wider infrastructure asset class throughout the Covid-19 related challenges of the past year. In an environment of necessarily accommodative fiscal and monetary policies, our in-year return performance was well in excess of our long-term targets.
"We believe that the company continues to be well placed to deliver attractive risk-adjusted returns in a sustainable manner over the long term."

Indeed. And I am pleased about that, I suppose. But he is also suggesting that, upon a reversal of this accommodation, don't be surprised if the target is merely outperformance, rather than something absolutely positive.

That said, this one certainly has a place.

[cocopah] 06/7/2021 07:51

Gateside - Agree, good to see solid results with no drama, market reaction should be positive (by which I mean muted). This from the press: Sequoia saw its total net assets grow from £1.59bn to £1.81bn throughout the year, while its net asset value increased to 103.18p per ordinary shares from 96.6p for a NAV total return of 13.5%.
The FTSE 250-listed group also paid a total dividend of 6.25p during the year, up slightly from the 6.18p returned to investors a year earlier.
Sequoia also recorded a share price total return of 17.4% in the year.
Chairman Robert Jennings said: "SEQI has demonstrated the considerable resilience of its portfolio and the wider infrastructure asset class throughout the Covid-19 related challenges of the past year. In an environment of necessarily accommodative fiscal and monetary policies, our in-year return performance was well in excess of our long-term targets.
"We believe that the company continues to be well placed to deliver attractive risk-adjusted returns in a sustainable manner over the long term."

[gateside] 06/7/2021 07:31

Good set of results.Nice predictable quarterly dividend."In the absence of any significant restricting factors, the Board expects to pay dividends totalling 6.25p per Ordinary Share per annum (increased from 6p per Ordinary Share with effect from the quarter ended 30 June 2019) for the foreseeable future."

[cocopah] 05/7/2021 21:29

RNS details of investor call for y/e results call tomorrow:
hxxps://polaris.brighterir.com/public/sequoia_fund/news/rns/story/xj3041w/export

[cocopah] 25/6/2021 17:04

This from the financial press today:

“The $1.2trn infrastructure deal approved by the President will provide a boost to roads, bridges, broadband, passenger and freight services,” said Interactive Investor analyst Richard Hunter.
“Quite apart from the further injection into revitalising the economy, the amount is less than the $3trn which had been sought by the President, thus having lower tax implications than had been thought to pay for it.”

Not sure but I believe it could be really positive for SEQI … obviously another fundraise would be required. Thoughts?