Sequoia Economic Infra Inc Fd Ld Net Asset Value(s) (8084B)

TIDMSEQI

RNS Number : 8084B

Sequoia Economic Infra Inc Fd Ld

15 January 2018

15 January 2018

Sequoia Economic Infrastructure Income Fund Limited

Net Asset Value as at 29 December 2017 and Investment Update

Ordinary Share update

SEQI's NAV increased to 101.81p per share from 101.36p per share on 30 November 2017 which arose primarily through:

   --      Interest income net of expenses of 0.58p; 
   --      A decrease of 0.06p in asset valuations; 
   --      A decrease of 0.07p from FX movements. 

The Company's invested portfolio represented 88.6% of the Company's NAV, with an additional GBP70.6m either traded but not settled or undrawn commitments. The total portfolio, including both acquired assets and assets which the Company has committed to buy but remain unsettled or undrawn, represented 97.8% of the Company's NAV.

The total portfolio comprised a total of 55 investments collectively valued at GBP750.4m (including accrued interest): 36 private debt investments and 19 infrastructure bonds across 8 sectors and 23 subsectors.

The total portfolio had an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 8.0% and a weighted average life of approximately 5.0 years. Private debt investments represented 75% of the total portfolio and 55% of it comprised floating rate assets. The weighted average purchase price of the Company's investments was c.95.5% of par. Investments which are pre-operational represented 17.4% of total assets.

As at 29 December 2017, approximately 95% 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 December include:

   --      A GBP20m primary loan to Bulb Energy, a UK renewables energy supplier; 
   --      A $19.6m secondary loan to Project Argon, a loan backed by eight mid-life aircraft; 
   --      A EUR10m primary loan to Kraftwerk Obernburg, a German combined heat and power plant; 
   --      $10m of Adani Abbot 4.45% 2022 bonds, a coking coal export terminal in Australia; 
   --      An additional $850k disbursement to Sunrun, a US residential solar company. 

Lastly, the EUR8.6m loan to Latecoere prepaid in line with the Company's expectations.

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       39.6    Transport              Road      6.1(2) 
 Hawaiki Mezzanine                                                                      Undersea 
  Loan                    USD       Private       Mezz       38.7          TMT             cable        11.6 
                                                                                            Data 
 IO Data Centers          USD       Private     Senior       37.0          TMT           centers         9.0 
 Cory Environmental       GBP       Private     HoldCo       31.3      Utility   Waste-to-energy         8.5 
 Regard Group                                                                             Health 
  Mezzanine               GBP       Private       Mezz       29.4      Accomm.              care        12.1 
                                                                                            Data 
 Abteen Ventures          USD       Private     Senior       25.9          TMT           centers         8.0 
 Aquaventure              USD       Private     Senior       25.9      Utility             Water         7.7 
 Warnow Tunnel            EUR       Private     Senior       20.8    Transport              Road         6.8 
                                                                                      Industrial 
 Natgasoline              USD       Private       Mezz       20.4        Other             infra        10.0 
                                                                                     Electricity 
 Bulb Energy              GBP       Private     Senior       20.0      Utility            Supply         9.0 
 Exeltium 
  Mezzanine               EUR       Private       Mezz       19.6        Power               PPA         9.4 
 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         8.3 
                                                                                           Solar 
 Neoen Production         EUR       Private     HoldCo       15.6   Renewables            & wind         7.0 
 

Note (1) - excluding accrued interest

Note (2) - Yield-to-date of expected refinancing.

Market Summary

A total of 23 project finance transactions closed in December throughout the Company's eligible jurisdictions, worth $7.9bn in aggregate. Notable transactions during the month include:

   --      The $826m additional financing of the 250MW Silver Slate Solar Facility in Primm, Nevada; 
   --      The GBP835m refinancing of rolling stock for the Greater Anglia franchise; 

-- The $189.1m bond issue for the redevelopment of a terminal at Denver International Airport, and;

-- The EUR446.3m refinancing of Covanta's 58MW Waste-to-Energy plant in Dublin, consisting of EUR396.3m of senior debt and EUR50m of junior debt.

In December, estimates of US economic growth for Q3 2017 was estimated at 3.2% by the Commerce Department. The US economy added 148k jobs, keeping the unemployment rate at 4.1%.

The Eurozone experienced its strongest quarterly growth in almost seven years, with 0.8% growth. The UK economy remained steady, with 0.5% growth. During December, the Euro strengthened and the US Dollar weakened against Sterling ending the month at EUR1.1250 and $1.3524 respectively.

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

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January 15, 2018 02:00 ET (07:00 GMT)