TIDMSEQI
RNS Number : 8702S
Sequoia Economic Infra Inc Fd Ld
14 July 2020
14 July 2020
Sequoia Economic Infrastructure Income Fund Limited
("SEQI" or the "Company")
NAV update
The NAV for SEQI, the specialist investor in economic
infrastructure debt, increased to 99.28 pence per share from the
prior month's NAV of 98.21 pence per share, representing an
increase of 1.07 pence per share.
The gain in asset valuations can be attributed primarily to
spread tightening of comparable investments across the portfolio
and continued positive credit developments in the wake of the
ongoing COVID-19 pandemic.
A full attribution of the changes in the NAV per share is as
follows:
pence per
share
--------------------------------- ---------
May NAV 98.21
--------------------------------- ---------
Interest income, net of expenses 0.72
FX movements, net of hedges -0.18
Increase in asset valuations 0.53
June NAV 99.28
--------------------------------- ---------
Update on the effects of COVID-19 on the Portfolio
The Investment Adviser, the Investment Manager, and PWC, the
independent valuation agent have continued analysing the effect of
COVID-19 on the Company's portfolio which also includes a market
benchmarking exercise to conclude on spread and yield adjustments
for each of the investments in the portfolio.
In summary, the spread widening across the portfolio during the
second half of March 2020 continued its reversal throughout June,
with several of the Company's investments performing better than
expectations throughout the lockdown. The spread tightening seen in
the markets and the broader credit outperformance contributed to
another market movements gain this month of 0.53 pence per
share.
The restructuring process of the US midstream business is still
ongoing. Since March, there has been some recovery in the
valuations of the previous investments that have been significantly
marked down as a result of the ongoing pandemic and continued
weakness in oil prices. There were no material asset write downs in
June.
Further Portfolio update
As at 30 June 2020, the Company had cash of GBP74.2m and had
drawn GBP76.0m on its GBP280m Revolving Credit Facility. The
Company also had undrawn commitments on existing investments
collectively valued at GBP67.4m. As of 30 June 2020, the Company's
invested portfolio comprised of 59 private debt investments and 12
infrastructure bonds across 8 sectors and 28 sub-sectors. It had an
annualised yield-to-maturity (or yield-to-worst in the case of
callable bonds) of 10.7% and a weighted average life of
approximately 5.5 years. Private debt investments represented 94%
of the total portfolio and 66% of the portfolio comprised floating
rate assets. The weighted average purchase price of the Company's
investments was 96.6% of par. Investments which are pre-operational
represented 11.5% of total assets.
The Company's invested portfolio remains geographically diverse
with 53% located across the US, 15% in the UK, 26% in Europe, and
6% 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 97.3% of the Company's NAV consisted
of either Sterling assets or was hedged into Sterling. The Company
has adequate resources to cover margin calls on its hedging
book.
The Company's settled investment activities during June
include:
-- A $50.0m primary senior secured loan to Genon Bowline Power
with 1st lien on a natural-gas plant serving the NYISO market;
-- An additional NOK 3.0m secondary acquisition of Exmar's
variable rate bonds maturing in 2022, backed by LNG and LPG
vessels;
-- An additional $1.6m disbursement to Prime Data Centres for
the development of a data centre campus in Sacramento, California;
and
-- An additional $0.9m disbursement to Bourzou Equity, a company
created for the construction of a data centre in Virginia.
The following Company's investments were sold or prepaid in
June:
-- $28.2m senior secured loan to Panda Patriot backed by an
829MW CCGT power plant in Pennsylvania; and
-- EUR26.4m secondary loan to Project Serrezuela, a portfolio of
operational solar PV plants in the Murcia region of Spain.
Ordinary Portfolio Summary (15 largest settled investments)
Investment name Currency Type Ranking Value Sector Sub-sector Yield
GBPm to maturity
(1) / worst
(%)
AP Wireless Junior EUR Private Mezz 62.1 TMT Telecom towers 6.30
Hawaiki Mezzanine Undersea
Loan USD Private Mezz 54.5 TMT cable 15.00
Expedient Data
Centers Senior
Secured USD Private Senior 51.2 TMT Data centers 6.16
Terra-Gen Power
TL B USD Private Senior 45.7 Renewables Solar & wind 9.31
Hawkeye Solar
HoldCo 2030 1,
2, and 3 USD Private HoldCo 43.6 Renewables Solar & wind 8.25
Tracy Hills TL Residential
2025 USD Private Senior 43.5 Other infra 9.29
Scandlines Mezzanine
2032 EUR Private HoldCo 43.0 Transport Ferries 7.98
Jetpeaks HoldCo Electricity
2027 USD Private HoldCo 43.0 Power generation 7.79
Euroports 2nd
Lien 2026 EUR Private Mezz 42.7 Transport Port 9.05
Electricity
Bizkaia TL 2021 EUR Private HoldCo 41.4 Power generation 9.07
Adani Abbot HoldCo
2021 AUD Private HoldCo 41.0 Transport Port 12.55
Bannister Senior
Secured 2025 GBP Private Senior 40.7 Accommodation Health care 8.76
GenOn Bowline
Senior Secured Electricity
2026 USD Private Senior 40.4 Power generation 7.00
Corral HoldCo
2024 USD Private HoldCo 37.9 Other Refinery 11.69
American Shipping
Company 9.25% Transport Specialist
2022 USD Private Senior 37.3 assets shipping 7.48
Note (1) - excluding accrued interest
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
Anurag Gupta
Jefferies International Limited +44 (0)20 7029 8000
Gaudi le Roux
Neil Winward
Tulchan Communications (Financial PR) +44 (0)20 7353 4200
Martin Pengelley
Elizabeth Snow
Deborah Roney
Praxis Fund Services Limited (Company Secretary) +44 (0) 1481 755530
Matt Falla
Katrina Rowe
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
NAVSFLFMDESSESW
(END) Dow Jones Newswires
July 14, 2020 02:00 ET (06:00 GMT)
Grafico Azioni Sequoia Economic Infrast... (LSE:SEQI)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Sequoia Economic Infrast... (LSE:SEQI)
Storico
Da Apr 2023 a Apr 2024