Refinancing of Revolving Credit Facility

RNS Number : 2932S

Sequoia Economic Infra Inc Fd Ld

15 November 2021

 

15 November 2021

Sequoia Economic Infrastructure Income Fund Limited

(the "Company"  or "SEQI" ) 

Refinancing of Revolving Credit Facility

The Board of SEQI, the specialist investor in economic infrastructure debt, is pleased to announce that it has successfully refinanced and increased the Company's existing multi-currency Revolving Credit Facility of £280 million that was due to mature on 07 December 2021.

The new £325m multi-currency Sustainability-Linked Revolving Credit Facility ("RCF") is provided by The Royal Bank of Scotland International Limited (Mandated Lead Arranger, Bookrunner and Documentation Coordinator), ING Bank (Mandated Lead Arranger and Sustainability Coordinator), Macquarie (Arranger) and Raiffeisen Bank International AG (Arranger), has a three 3-year tenor and benefits from a £75m Accordion Facility. The RCF has a lower borrowing cost of 200 basis points over SONIA (or equivalent), compared to 210 basis points over LIBOR on the prior facility. An arrangement fee will be payable upfront in addition to a commitment fee on the undrawn portion of the new RCF on equivalent terms to the previous facility.

The facility is sustainability linked, with margin premium or discount linked to the ESG score of the SEQI investment portfolio as verified by an independent assurance process. The sustainability feature of the RCF underlines the Company's commitment to its long-term sustainable investment initiative.

The RCF and the Accordion Facility (if exercised) provide the Company with additional liquidity which will be used for working capital purposes and to fund investments in accordance with the Company's investment policy.

The RCF imposes an interest cover test and a loan to value test on the Company and is secured by, inter alia, a charge over the bank accounts of the Company, a charge over the shares in Sequoia IDF Asset Holdings S.A. (the "Subsidiary") held by the Company and a charge on the assets of the Subsidiary. In accordance with the Company's Investment Policy, any borrowings undertaken by the Company will not exceed 20 per cent. of the value of the assets of the Company less its liabilities. 

For further information please contact:

Sequoia Investment Management Company Steve Cook Dolf Kohnhorst Randall Sandstrom Greg Taylor Anurag Gupta	[phone]
Jefferies International Limited (Corporate Broker & Financial Adviser) Neil Winward Gaudi Le Roux	[phone]
Tulchan Communications (Financial PR) Martin Pengelley Elizabeth Snow  Deborah Roney	[phone]
Praxis Fund Services Limited (Company Secretary) Matt Falla Katrina Rowe	[phone]

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.

LEI: 2138006OW12FQHJ6PX91

 

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