TIDMSEQI
RNS Number : 3303T
Sequoia Economic Infra Inc Fd Ld
14 November 2019
14 November 2019
Sequoia Economic Infrastructure Income Fund Limited
("SEQI" or the "Company")
Net Asset Value as at 31 October 2019 and Investment Update
The NAV for SEQI, the specialist investor in economic
infrastructure debt, increased to 104.08p from the prior month's
NAV of 103.74p per share (being the 30 September cum-income NAV of
105.30p less the dividend of 1.5625p per share declared in respect
of the quarter ended 30 September 2019). The changes in NAV arose
primarily through:
-- Interest income net of expenses of 0.59p;
-- A decrease of 0.30p in asset valuations; and
-- Unhedged FX gains of 0.04p.
As at 31 October 2019, the Company had cash of GBP55.8m and
outstanding drawings on its Revolving Credit Facility of GBP114.2m.
The Company also had undrawn commitments, and four additional
investments in settlement, collectively valued at GBP158.8m.
The Company's invested portfolio comprised of 65 private debt
investments and 15 infrastructure bonds across 8 sectors and 30
sub-sectors. It had an annualised yield-to-maturity (or
yield-to-worst in the case of callable bonds) of 8.3% and a
weighted average life of approximately 4.0 years. Private debt
investments represented 89% of the total portfolio and 73% of the
portfolio comprised floating rate assets. The weighted average
purchase price of the Company's investments was 94.2% of par.
Investments which are pre-operational represented 15.3% of total
assets.
The Company's invested portfolio remains geographically diverse
with 46% located across the US, 19% in the UK, 28% in Europe, and
7% in Australia/New Zealand. Currently the Company is not investing
in Portugal or Italy but has selectively invested in opportunities
in Spain. 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 the cash costs associated with its
hedging activities.
The Company's settled investment activities during October
include:
-- A GBP28.0m primary loan to Base Student Housing, a student
accommodation building in Glasgow, Scotland;
-- A GBP25.0m primary loan to NewCold Wakefield, a cold storage facility in Wakefield, UK;
-- A $25.0m primary participation in Raptor 2019-1C bonds backed by a portfolio of aircraft;
-- An initial EUR13.5m primary loan to Project Swordfish, a
company that operates waterbus passenger transport systems in
Antwerp, Belgium;
-- A $10.0m secondary acquisition of EIF Van Hook Midstream, a
midstream oil & gas company that operates primarily in North
Dakota, USA; and
-- An additional $2.2m disbursement to Bourzou Equity LLC, a
company created for the construction of a data center in Virgina,
USA.
The following investments were sold in October:
-- $12.0m of North Las Vegas Water 6.572% 2040 bonds; and
-- $10.0m of Adani Abbot Point Terminal 4.45% 2022 bonds.
Ordinary Portfolio Summary (15 largest settled investments)
Investment name Currency Type Ranking Value Sector Sub-sector Yield
GBPm(1) to maturity
/ worst
(%)
Hawaiki Mezzanine Undersea
Loan USD Private Mezz 57.4 TMT cable 11.6
Salt Creek Midstream
Senior Debt USD Private Senior 53.1 Utility Midstream 7.9
Tracy Hills TL Residential
2025 USD Private Senior 45.4 Other infra 9.8
Scandlines Mezzanine
2032 EUR Private HoldCo 45.1 Transport Ferries 5.8
Euroports 2nd
Lien 2026 EUR Private Mezz 43.0 Transport Port 7.8
Bannister Senior
Secured 2025 GBP Private Senior 41.2 Accomm. Health care 8.4
Adani Abbot HoldCo
2021 AUD Private HoldCo 39.9 Transport Port 9.2
Kaveh Senior
Secured TL 2021 USD Private Senior 38.6 TMT Data centers 7.6
Whittle Schools Private
B USD Private Senior 38.5 Other schools 10.8
Nasco Senior Industrial
Secured 2020 USD Private Senior 38.2 Other infra 7.5
Electricity
Bizkaia TL 2021 EUR Private HoldCo 36.8 Power generation 7.7
Bulb Senior TL Electricity
2021 GBP Private Senior 35.0 Utility supply 7.2
Aquaventure Senior
Secured USD Private Senior 34.8 Utility Water 7.8
Heritage Power Electricity
Senior Secured USD Private Senior 34.0 Power generation 8.3
EIF Van Hook
TL B 2024 USD Private Senior 31.4 Utility Midstream 8.8
Note (1) - excluding accrued interest
Market Summary
A total of 41 project finance transactions closed in October
throughout the Company's eligible jurisdictions, worth $5.6bn in
aggregate. Notable transactions outside of the Company's investment
activities during the month include:
-- EUR780m financing of the construction of the Fryslan Offshore
Wind Farm in the Netherlands;
-- A GBP450m refinancing of Ark Data Centres' senior debt in the
UK; and
-- A EUR580m refinancing of the Liefkenshoek Rail Tunnel in
Belgium.
In October, the US economy added 128,000 new jobs, with the
unemployment rate up to 3.6%, as 325,000 people started looking for
work. At the end of the month, the Federal Reserve cut interest
rates by a quarter of a point, in line with expectations.
The Eurozone economy remains weak, with low expectations for
growth and warnings from outgoing ECB president Draghi that further
stimulus is needed.
The UK economy also remains weak, with continued Brexit
uncertainty and challenging global conditions.
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 +44 (0)20 7079 0480
Steve Cook
Dolf Kohnhorst
Randall Sandstrom
Greg Taylor
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Mark Bloomfield
Alex Miller
Tulchan Communications (Financial PR) +44 (0)20 7353 4200
James Macey White
Martin Pengelley
Elizabeth Snow
Praxis Fund Services Limited (Company Secretary) +44 (0) 1481 755530
Matt Falla
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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November 14, 2019 02:01 ET (07:01 GMT)
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