TIDMSEQI
RNS Number : 7497M
Sequoia Economic Infra Inc Fd Ld
18 October 2016
18 October 2016
Sequoia Economic Infrastructure Income Fund Limited
Net Asset Value as at 30 September 2016 and Investment
Update
Ordinary Share update
As of the 30th September 2016, the Ordinary share class held 17
private debt investments and 11 infrastructure bonds, collectively
valued at GBP300.4m including accrued interest, with an annualised
yield-to-maturity (or yield-to-worst in the case of callable bonds)
of 8.3% and a weighted average life across the acquired portfolio
of approximately 5.1 years.
Approximately 52% of the Ordinary Share portfolio comprises
floating rate assets, with only two LIBOR floors above current
LIBOR levels (of which one is Sterling and the other is Euros). As
such, the portfolio's yield is likely to rise over time as LIBOR
increases.
The investments are across the UK, Western Europe, Australia,
Canada and the US and include a wide range of asset types including
road, rail, utility, power, shipping, renewables and aircraft and
ship leasing.
The increase in the Ordinary Share NAV (cum dividend) to 101.29p
from 100.44p per share arose primarily through:
-- Interest income net of expenses of 0.43p;
-- A decline of 0.07p in asset valuations; and
-- An increase of 0.49p in FX movements.
Ordinary Portfolio Summary (10 largest settled investments)
Transaction Currency Type Ranking Value Sector Sub-sector Yield
name GBPmm(1) to
maturity
/ worst
(%)
A'lienor
S.A.S. (A65) EUR Private Senior 32.6 Transport Road 4.96
Solar
Infinis Bridge GBP Private HoldCo 24.0 Renewables & Wind 10.00
Exeltium
Mezzanine EUR Private Mezz 19.3 Power PPA 9.14
Danaos Snr Transport
Secured 2018 USD Private Senior 17.1 assets Shipping 16.44
Neoen Production Solar
1 S.A.S.U EUR Private HoldCo 16.9 Renewables & Wind 6.99
IO Data Centers Data
LLC USD Private Senior 15.4 TMT Centres 7.50
Biffa TL
A GBP Private Senior 13.1 Utility Waste 5.90
GFL 9.875%
2021 USD Public Senior 12.7 Utility Waste 6.01
Reliance
Rail Finance Transport Rolling
2018 USD Private Senior 11.1 assets Stock 5.96
Green Plains
TL B USD Public Senior 11.0 Transport Roads 7.38
Note (1) - excluding accrued interest
C Share update
As of the 30th September 2016, the C Share class held 8 private
debt investments and 2 infrastructure bonds, with one further
private debt position settled, but remains undrawn. Including
undrawn assets the C share class was 93.2% invested as at 30
September 2016.
These assets are collectively valued at GBP133.7m including
accrued interest, with an annualised yield-to-maturity (or
yield-to-worst in the case of callable bonds) of 9.0% and a
weighted average life across the acquired portfolio of
approximately 3.6 years.
The investments are geographically diverse and cover the power,
aircraft leasing, renewable, utility and health care sectors.
Investments in September include a senior secured bridge loan to
fund the acquisition of two renewable projects from SunEdison
through a private sale process.
The Investment Adviser continues to see attractive opportunities
for the deployment of capital in the economic infrastructure debt
sector and expects the overall yield on the C Share portfolio to
remain 8% or higher.
The C Share Conversion Ratio will be announced alongside the
September monthly NAV and Conversion will be effective as at 1
November 2016.
The increase in the C Share NAV (cum dividend) to 99.21p from
98.49p per share arose primarily through:
-- Interest income net of expenses of 0.26p;
-- An increase of 0.18p in asset valuations; and
-- An increase of 0.27p in FX movements.
C-Share Portfolio Summary (all settled investments)
Transaction Currency Type Ranking Value Sector Sub-sector Yield
name GBPmm(1) to
maturity
/ worst
(%)
AP Wireless
Infrastructure GBP Private Senior 27.0 TMT Towers 6.63
Regard Group Health
Mezzanine GBP Private Mezz 22.6 Accommodation Care 12.00
Natgasoline Industrial
Senior Unsecured USD Private Mezz 19.5 Other Infrastructure 9.51
Solar
Mount Signal USD Private Senior 14.9 Renewables & Wind 8.49
Longview
Power TL Electricity
B USD Private Senior 13.2 Power Generation 10.40
IO Data Centers Data
LLC USD Private Senior 11.6 TMT Centres 7.50
Talen Energy
Supply 4.6% Electricity
2021 USD Public Senior 11.3 Power Generation 11.11
Peterborough
Progress
Health GBP Public Senior 9.0 Other PFI 5.73
Castlelake Transport
2016-1 C USD Private Mezz 3.0 Assets Aircraft 8.37
DBB Jack-up
Services Renewable
2019 EUR Private Senior 0.5 Other Equipment 9.6
Note (1) - excluding accrued interest
Market Summary
September was another active month for European renewable
projects with the 309MW Rentel Offshore Wind Farm in Belgium
reaching financial close with EUR850m of debt and EUR250m of
equity.
Sterling fell sharply against the US Dollar at $1.29, and fell
slightly against the Euro, ending the month at EUR1.15.
During September, the Bloomberg USD High Yield Corporate Bond
Index rose slightly from 166 to 167.
The Company's monthly investor report and additional portfolio
disclosure will be made available at http://www.seqifund.com/.
Sequoia Investment Management Company
Randall Sandstrom / Steve Cook Telephone 020 7079 0483 / 020
7079 0481
Stifel Nicolaus Europe Limited
Neil Winward / Mark Bloomfield / Gaudi Le Roux Telephone 020 7710 7600
International Fund Management Limited
Chris Hickling Telephone 01481 737600
About Sequoia Economic Infrastructure Income Fund Limited
The Company is a Guernsey registered closed-ended investment
company that 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. The Company has been advised that the
Shares can be considered as "excluded securities" for the purposes
of the FCA rules regarding the definition and promotion of
Non-Mainstream Pooled Investments (NMPIs).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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