Net Asset Value(s)

RNS Number : 3597K

Sequoia Economic Infra Inc Fd Ld

16 April 2015

 

16 April 2015

Sequoia Economic Infrastructure Income Fund Limited

Net Asset Value as at 31 March 2015 and Investment Update

The Board of Directors of the Company is pleased to announce the Net Asset Value as at 31 March 2015 of 98.23p per share. 

While some parts of the market have experienced a degree of yield compression, attractive pricing is still available for the Company's target investments, with senior spreads broadly unchanged from prior to the IPO and typical mezzanine margins remaining in the region of 4-6%. As such, as at 31 March 2015, the Company had invested in six infrastructure bonds valued at £25.8m, including accrued interest, with an annualised yield to maturity (or yield to worst in the case of callable bonds) of 6.9% and an average life across the acquired portfolio of approximately 10.5 years.  Of these investments, five were indicated to investors in the Prospectus as being part of the Target Portfolio. Details of the existing six positions which have settled will be disclosed in the Company's monthly factsheet which will be made available at www.seqifund.com.

In addition, as at the 31 March 2015, the Company had purchased three loans plus an incremental order on one of the six bonds already purchased. The aggregate purchase price of these investments - which had not settled by the end of March and therefore are not reflected in the NAV - is approximately £18.9m.

The purchase price of these nine transactions represents approximately 30% of the net proceeds of the IPO.

The nine transactions include loans and bonds to the road, rail, utility and aircraft leasing sectors and are to borrowers in Western Europe, the US and the UK. In aggregate the price paid, and the yield achieved, are in line with the Company's target yield.

The Board is pleased with the initial deployment of IPO proceeds and believes that the Company is on target to achieve the anticipated deployment schedule anticipated at launch.  In addition, the Board confirm their expectation to pay its first dividend for the period end June 2015 in line with its year one target of a 5% dividend yield with reference to the IPO issue price.

Unless otherwise defined, capitalised terms used in this announcement have the same meaning as those defined in the Prospectus.

Sequoia Investment Management Company Randall Sandstrom Steve Cook	[phone]
Stifel Nicolaus Europe Limited Neil Winward Mark Bloomfield Gaudi Le Roux	[phone]
Praxis Fund Services Limited (Company Secretary) Shona Darling	[phone]

 

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