Sequoia Economic Infra Inc Fd Ld Net Asset Value(s) (2768Z)

TIDMSEQI

RNS Number : 2768Z

Sequoia Economic Infra Inc Fd Ld

14 December 2017

14 December 2017

Sequoia Economic Infrastructure Income Fund Limited

Net Asset Value as at 30 November 2017 and Investment Update

Ordinary Share update

SEQI's NAV increased to 101.36p per share from 100.75p per share on 31 October 2017 which arose primarily through:

   --      Interest income net of expenses of 0.65p; 
   --      An increase of 0.17p in asset valuations; 
   --      A decrease of 0.22p from FX movements. 

The Company's total invested portfolio represented 82.4% of the Company's NAV, with an additional GBP77.6m either traded but not settled or undrawn commitments. The total amount invested and committed represents 92.6% of the Company's NAV.

The portfolio comprised a total of 50 investments collectively valued at GBP633.6m (including accrued interest): 32 private debt investments and 18 infrastructure bonds across 8 sectors and 22 subsectors.

The annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) was 8.0% and the acquired portfolio had a weighted average life of approximately 4.8 years. Private debt investments represented 74.4% of the Company's investments and 58% of the invested portfolio comprised floating rate assets. The weighted average purchase price of the Company's acquired investments was c.95.2% of par. Investments which are pre-operational represent 16.9% of total assets.

As of the 30 November 2017, approximately 89% of NAV consisted 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 November include:

-- A $35m secondary acquisition of a loan to Aquaventure, a leading water service provider through its purification and desalination technologies;

-- GBP8.0m-equivalent of NOK and USD bonds issued by Exmar, a leading operator of LNG and LPG vessels; and

-- An incremental GBP1.5m disbursement to the Clyde Street Glasgow student housing transaction.

Additionally, the Company sold the following positions following positive price movements:

   --      $10m NRG 2027 bonds; and 
   --      $10.5m Bristow 2022 bonds. 

Lastly, AUD$48.3m of the Reliance Rail bonds and $18.8m of the Global Ship Lease 2019 bonds prepaid in line with the Company's expectations.

Revolving Credit Facility ("RCF")

The Company is pleased to announce that it has repaid its previous gross leverage of GBP40m in full, and subsequently secured a multi-currency RCF of GBP100m. The tenor of the facility will be three years at a cost of LIBOR plus 2.10%, and will be used for working capital purposes and to acquire additional investments in accordance with the Company's investment policy.

The RCF will enable the Company to reduce cash drag by buying assets through the use of leverage with the intention to pay this down in the future through equity issuance.

Ordinary Portfolio Summary (15 largest settled investments)

 
 Transaction           Currency        Type    Ranking      Value       Sector        Sub-sector       Yield 
  name                                                    GBPm(1)                                         to 
                                                                                                    maturity 
                                                                                                     / worst 
                                                                                                         (%) 
 
 A'lienor 
  S.A.S. (A65)            EUR       Private     Senior       39.0    Transport              Road         2.2 
 Hawaiki Mezzanine                                                                      Undersea 
  Loan                    USD       Private       Mezz       38.4          TMT             cable        11.2 
                                                                                            Data 
 IO Data Centers          USD       Private     Senior       37.0          TMT           centers         9.0 
 Cory Environmental       GBP       Private     HoldCo       32.7      Utility   Waste-to-energy         8.5 
 Regard Group                                                                             Health 
  Mezzanine               GBP       Private       Mezz       29.0      Accomm.              care        12.1 
                                                                                            Data 
 Abteen Ventures          USD       Private     Senior       25.9          TMT           centers         8.0 
 Aquaventure              USD       Private     Senior       25.9      Utility             Water         7.3 
 Warnow Tunnel            EUR       Private     Senior       21.1    Transport              Road         6.8 
 Exeltium 
  Mezzanine               EUR       Private       Mezz       20.6        Power               PPA        12.4 
                                                                                      Industrial 
 Natgasoline              USD       Private       Mezz       20.4        Other             infra        10.0 
 Welcome Break                                                                          Motorway 
  No.1 Ltd                GBP       Private       Mezz       18.3    Transport          services         8.4 
 NGG Finance                                                                               Elec. 
  5.625% 2073             GBP        Public       Mezz       17.0      Utility      distribution         3.6 
 Terra-Gen 
  Power TL                                                                                 Solar 
  B                       USD       Private     Senior       16.8   Renewables            & wind         8.2 
                                                                                           Solar 
 Neoen Production         EUR       Private     HoldCo       16.6   Renewables            & wind         7.0 
 Tracy Hills                                                                         Residential 
  TL 2025                 USD       Private     Senior       15.5        Other             infra         9.3 
 

Note (1) - excluding accrued interest

Market Summary

A total of 11 project finance transactions closed in November throughout the Company's eligible jurisdictions, worth $7.9bn in aggregate. Notable transactions during the month include:

-- The EUR2.26bn additional financing of the Pedemontana Veneta toll road in Italy through a senior and subordinated bond issue;

-- The EUR150m loan by the European Investment Bank to build eight wind farms throughout Italy; and

   --      The EUR115m financing of the new police headquarters in Antwerp, Belgium. 

In November, the estimate of third quarter US growth was further revised to 3.3%, the highest growth rate since the third quarter of 2014. The US economy added 228,000 jobs, keeping the unemployment rate at 4.1%.

The UK economy has grown 0.5% in the three months to November, helped by an increase in exports. During November, the Euro strengthened and the US Dollar weakened against Sterling ending the month at EUR1.1360 and $1.3509 respectively, and the Bloomberg USD High Yield Corporate Bond Index fell slightly to 182.7.

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                           [phone] 

Steve Cook

Dolf Kohnhorst

Randall Sandstrom

Greg Taylor

   Stifel Nicolaus Europe Limited                                                [phone] 

Neil Winward

Mark Bloomfield

Gaudi Le Roux

   Tulchan Communications (Financial PR)                                 [phone] 

James Macey White

Martin Pengelley

Elizabeth Snow

   Praxis Fund Services Limited (Company Secretary)               [phone] 

Shona Darling

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 company news service from the London Stock Exchange

END

NAVBUBDDXUBBGRX

(END) Dow Jones Newswires

December 14, 2017 02:01 ET (07:01 GMT)