Net Asset Value(s)

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 £70.6m 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 £750.4m (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 £20m 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 €10m 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 €8.6m loan to Latecoere prepaid in line with the Company's expectations.

Ordinary Portfolio Summary (15 largest settled investments)

Transaction name	Currency	Type	Ranking	Value £m(1)	Sector	Sub-sector	Yield to maturity / worst (%)
A'lienor S.A.S. (A65)	EUR	Private	Senior	39.6	Transport	Road	6.1(2)
Hawaiki Mezzanine Loan	USD	Private	Mezz	38.7	TMT	Undersea cable	11.6
IO Data Centers	USD	Private	Senior	37.0	TMT	Data centers	9.0
Cory Environmental	GBP	Private	HoldCo	31.3	Utility	Waste-to-energy	8.5
Regard Group Mezzanine	GBP	Private	Mezz	29.4	Accomm.	Health care	12.1
Abteen Ventures	USD	Private	Senior	25.9	TMT	Data centers	8.0
Aquaventure	USD	Private	Senior	25.9	Utility	Water	7.7
Warnow Tunnel	EUR	Private	Senior	20.8	Transport	Road	6.8
Natgasoline	USD	Private	Mezz	20.4	Other	Industrial infra	10.0
Bulb Energy	GBP	Private	Senior	20.0	Utility	Electricity Supply	9.0
Exeltium Mezzanine	EUR	Private	Mezz	19.6	Power	PPA	9.4
Welcome Break No.1 Ltd	GBP	Private	Mezz	18.3	Transport	Motorway services	8.4
NGG Finance 5.625% 2073	GBP	Public	Mezz	17.0	Utility	Elec. distribution	3.6
Terra-Gen Power TL B	USD	Private	Senior	16.8	Renewables	Solar & wind	8.3
Neoen Production	EUR	Private	HoldCo	15.6	Renewables	Solar & 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 £835m 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 €446.3m refinancing of Covanta's 58MW Waste-to-Energy plant in Dublin, consisting of €396.3m of senior debt and €50m 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 €1.1250 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.

 

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