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                           +44 (0)20 7079 0480

Steve Cook

Dolf Kohnhorst

Randall Sandstrom

Greg Taylor

 

Stifel Nicolaus Europe Limited                                                +44 (0)20 7710 7600

Neil Winward

Mark Bloomfield

Gaudi Le Roux

 

Tulchan Communications (Financial PR)                                 +44 (0)20 7353 4200

James Macey White

Martin Pengelley

Elizabeth Snow 

 

Praxis Fund Services Limited (Company Secretary)               +44 (0) 1481 755528

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.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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