Sequoia Economic Infrast... Share Discussion Threads

[zeppo] 18/2/2020 18:26

Applying for excess through my broker usually yeilds good results.

Having some on certificate, I will have to hope for the best with the excess application.

I bought some on certificate to be able easily to go to AGMs - but this SEQI's AGM is held on the Channel Islands - lovely to visit but not just for an AGM.

A good investment though.

[winsome] 18/2/2020 13:54

I'm applying for as much excess as I have cash for. I agree share price will probably head back to 118p and will probably pass 120p before long.

[gateside] 14/2/2020 23:24

Recently bought in here for the steady dividend stream.Taking up my full Rights too.

[zeppo] 14/2/2020 18:44

winsome post:46

It has been at 1.186 (see FINANCIALS above).

I am taking up Rights and applying for excess.

There is no dealing charge for taking up these Rights shares.

IMHO it will get back to 1.18-1.20 over the coming months.

They have raised the dividend twice since the fund started and I would expect a further dividend rise in the next 18 months as the new investments come on stream.

My adviser is positive about taking it up.

[speedsgh] 14/2/2020 10:46

Looking to raise an initial £250m gross at 112p...

Initial Issue targeting £250 million and Share Issuance Programme -

Further to the announcement on 20 January 2020, the Board of Directors of SEQI (the "Board"), the specialist investor in economic infrastructure debt, is pleased to announce a proposed partially pre-emptive issue of Ordinary Shares seeking to raise £250 million of gross proceeds before expenses (the "Gross Issue Proceeds"), equivalent to up to 223,214,285 new ordinary shares of no par value (the "New Ordinary Shares"). The Board have determined that the New Ordinary Shares will be issued at a price of 112.0 pence per New Ordinary Share (the "Issue Price") (the "Initial Issue").

The Board recognises the importance of pre-emption rights to Ordinary Shareholders. Accordingly, 184,908,574 New Ordinary Shares are being initially offered to Qualifying Shareholders by way of the Open Offer pursuant to which they will be entitled to apply for 2 New Ordinary Shares for every 15 existing Ordinary Shares held at 6.00 p.m. on 6 February 2020 (the "Record Date"). The balance of the New Ordinary Shares, together with any New Ordinary Shares not taken up by Qualifying Shareholders under the Open Offer, will be made available under the Placing and/or Offer for Subscription of New Ordinary Shares.

The Company intends to use the proceeds raised from the Initial Issue (less expenses) (the "Net Issue Proceeds") to repay the drawn commitments under its £280 million Revolving Credit Facility ("RCF"). As at 31 December 2019, the Group had outstanding drawings on its RCF of £224 million and cash of £56.8 million, resulting in net leverage of £167.2 million. In addition, the Company had undrawn commitments on existing investments collectively valued at £92.7 million. Any Net Issue Proceeds raised in excess of the amount drawn or committed under its RCF are expected to be deployed into the Company's near term pipeline of in excess of £380 million of investment opportunities, in accordance with the Company's Investment Policy.

The Company has also proposed to implement a share issuance programme for up to a maximum of 300,000,000 additional Ordinary Shares (the "Share Issuance Programme") excluding the target amount of shares available under the Initial Issue. The Share Issuance Programme is being created to provide the Company with flexibility should it wish to raise further capital over the next 12 months to either repay any future drawn down funds under the RCF or to directly invest in new investment opportunities.

Robert Jennings, Chairman of SEQI commented:

"The fundraise announced builds on a successful period over the current financial year. The Board is encouraged by the Net Asset Value per share progression and by the quality and depth of our investment pipeline. In May last year the Board were able to increase our dividend reflecting our Net Asset Value per share at that time. If current trends continue, we will again review our target payout early in the coming financial year. This is appreciably sooner than we had previously expected."

[winsome] 04/2/2020 11:16

Any guess as to potential price if they go ahead? I was thinking 112p to 113p but share price is close to that now.

[gateside] 31/1/2020 16:04

Bought some today 114.658pShowed up as a sell.Bought for nice 5.4% dividend and low risk holding.

[zeppo] 20/1/2020 17:55

Is this another Rights issues?

Two previous ones have been successful for investors.

The one last was at £1.08 (with no dealing costs)

I have a good brokers who put us into SEQI before the previous £1.06 Rights issue but their costs are high so right issues are welcomed by myself.


Our broker also put us into AGR which had a Rights at 57p.

Those shares are now 77p.

[speedsgh] 20/1/2020 15:27

Possible Equity Raise -

SEQI, the specialist investor in economic infrastructure debt, is pleased to announce that the Company has materially deployed or committed the proceeds of its £280 million Revolving Credit Facility (the "RCF"). As at 31 December 2019, the Company had outstanding drawings on its RCF of £224 million and cash of £55.8 million, resulting in net leverage of £168.2 million. In addition, the Company had undrawn commitments on existing investments collectively valued at £92.7 million.

The Investment Adviser continues to see a strong pipeline of currently available investment opportunities meeting the Company's investment criteria. To take advantage of these opportunities, the Company intends to raise additional equity capital.

The proceeds from any equity raise will be used to repay debt outstanding under the RCF to enable the Investment Adviser to subsequently re-draw the funds to deploy into SEQI's pipeline of opportunities, minimising cash drag.

To the extent that the Board resolves to proceed with an equity raise, any issue of shares will be at a price per share that is accretive to NAV and is expected to include a material level of pre-emption rights for the Company's existing shareholders. Any such equity raise, including its structure, timing, size and approval by the Board, will be subject to the Company's level of deployment and net leverage, prevailing market conditions and regulatory approvals.

[pyufak] 02/9/2019 21:30

Ah, so private shareholders won’t be able to get involved with this? Hmm I find that annoying but I guess it’ll all depend on where the share price is set for the institutions.

[zeppo] 02/9/2019 09:43

rik shaw

A Placing rather than Rights.

Presumably institution/s have the confidence to take this up which cannot be a bad sign.

'Benefits of the Placing

The Board believes the Placing will confer the following benefits for shareholders and the Company:

· it will provide additional capital which will enable the Company to pay down its existing debt and pursue new investment opportunities in a manner which minimizes potential cash drag;

· the Placing will provide a larger asset base for the Company over which its operating costs may be spread, thereby reducing the Company's ongoing charges further;

· provide an opportunity to further diversify the Company's investor base, while enabling certain existing shareholders to participate in the Placing; and

· the market capitalisation of the Company will increase following the Placing and it is expected that the secondary market liquidity of the ordinary shares will be enhanced accordingly.'

[rik shaw] 02/9/2019 07:23

Just as the share price starts to head north another proposed fund raising comes along...

[apollocreed1] 01/7/2019 12:37

Through AJ Bell, I received 27% of the subscription shares I applied for. All the excess and basic were given in full.

[zeppo] 28/6/2019 18:28

Got into Seqi after ditching water shares 'cos of Corbin factor.

Happy to have done so.

Two rights issues since I came in, and a rising divi.

[pyufak] 28/6/2019 07:12

Anytime Zeppo, you should have these any day. Mine consolidated yesterday so can confirm 79.36% alloc. Very nice little trade this one - 5% up immediately. I personally really like the diversification this brings to my portfolio so will be keeping these.

[zeppo] 26/6/2019 21:46

Pyufak

Thank you!

Still waiting for news from my broker who has our Seqi in Isa's but I have applied also for excess.

[pyufak] 26/6/2019 21:19

Hi Zeppo, of course - 79.36% allocated of my excess shares. I applied in full and use interactive brokers. I am assuming in interactive brokers the two of the three additional SEQI lines now trading with a price (are my eligible allocation 100%,and excess allocation 79.36% and the remaining third line is trading at zero price). They should all become fungible on the 27th is my understanding.

[zeppo] 26/6/2019 11:21

Pyufak

Can you confirm the exact per centage (%) of excess shares if it is now definite?

Still waiting for news on nominee account application.

[pyufak] 24/6/2019 22:01

Think allocations are out - I got approx 80% of the additional shares which I applied for so fairly happy with that result.

[pyufak] 09/6/2019 22:13

Will def be taking up my rights.

This came on my radar when they proposed raising in May and I bought pre-emptively to get access to this

Stable fund, global assets via senior debt (even though I would prefer GBP not to he hedged) makes it a great bed rock to most portfolios. I especially like the lack of correlation in Q4 last year between this fund and equity markets.

Now, just crossing my fingers for the allocation on the excess rights though not that hopeful.

[zeppo] 08/6/2019 19:49

apollocreed and Voci


Thank you for your posts

[voci] 07/6/2019 23:38

I have held seqi for over a year. Happy with dividend and a relatively stable share price.


"The stability of this fund is unique because they have so many foreign holdings (with a hedge to GBP) that the political risk (especially regarding Jeremy Corbyn in the UK) is far less than other infrastructure funds. They also invest in debt as opposed to directly managing the assets, hence the lower volatility."

Good point well made Apollo


Will be applying for rights and more.

[voci] 07/6/2019 23:32

Zeppo

Epic for Greencoat is ukw.

You can check out performance & portfolio etc at this link

hxxps://www.theaic.co.uk/companydata/C9WD3


Here is a link to AIC web site's renewables sector

hxxps://www.theaic.co.uk/aic/find-compare-investment-companies?sector=Renewable+Energy+Infrastructure&name=&region=&manager=&;country=&objective=&op=Filter&sort=&form_build_id=form-n2MaParT7IpG6oP2sXPVRY-AX3FEKf6Qr7tFb7sRheM&form_id=aic_data_search_form

[zeppo] 07/6/2019 14:50

The 1st year ending 2016 paid 5p.

Since then it has been 6p per annum.

The May RNS shows a rising div policy.

Is buying debt a concern?

If debt cannot be paid can assets be possessed.?

Epic please for Greencoat Wind and any other 'green' company worth looking at.

In the Hydrogen economy I am into CWR, ITM and AFC but happy only with CWR.
CWR were recommended by the Midas column in the Mail on Sunday a few weeks ago.

Their CEO Phillip Cauldwell puts out video interviews.

Canadian company Ballard is well established fitting out fuel cell trains and buses around the world.


The 'hydrogen economy' does not, as yet, get much PR in the UK financial press.

Electric cars/ batteries and recharging points are well covered but fuel cells seldom get a mention.

Ceres's fuel cells could be big for static power situations but Weichai Power have 20% interest to develop Cere's cells as range extenders for electric buses in China.


Bosch have a smaller stake mainly, I think , for static power situations.

[apollocreed1] 07/6/2019 14:12

@Zeppo - I haven't carefully checked their dividend trend, but if it has (and will continue to) increased steadily, then that vindicates their strategy. I'm just comparing it with something like Greencoat Wind that has been flying.

The stability of this fund is unique because they have so many foreign holdings (with a hedge to GBP) that the political risk (especially regarding Jeremy Corbyn in the UK) is far less than other infrastructure funds. They also invest in debt as opposed to directly managing the assets, hence the lower volatility.