NAV and Investment Update

Sequoia Economic Infra Inc Fd Ld

18 May 2026

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES

Sequoia Economic Infrastructure Income Fund Limited ("SEQI" or the "Company")

MONTHLY FACTSHEET & COMMENTARY - April 2026

The NAV per share for SEQI, the largest LSE listed infrastructure debt fund, increased to 93.99 pence per share from the prior month's NAV per share of 93.17 pence, representing an increase of 0.82 pence per share. Adjusted for the accrual of the dividend of 1.71875 pence per share declared in respect of the quarter ended 31 March 2026 and payable on 22 May 2026, the NAV per share post-distribution is 92.27 pence per share.

	pence per share
31 March NAV	93.17
Interest income, net of expenses	0.50
Asset valuations, net of FX movements	0.25
Subscriptions / share buybacks	0.07
30 April NAV (pre-distribution)	93.99
Quarterly Dividend	-1.72
30 April NAV (post-distribution)	92.27

No expected material FX gains or losses are reflected in the NAV as the portfolio is approximately 100% currency-hedged. However, the Company's NAV may include short-term unrealised FX gains or losses, arising from differences in the valuation methodologies between FX hedges and the underlying investments. These FX-related fluctuations will typically reverse over time.

Key Performance Highlights - April 2026

Dividend yield of 8.70%[1], based on the closing share price of 79.00 pence as at 30 April and the annual dividend target of 6.875 pence per share.

Weighted average portfolio yield-to-maturity was 9.71% as at 30 April, reflecting the portfolio's strong income returns.

Portfolio pull-to-par[2] (which is incremental to NAV as loans mature over time) was 4.4 pence per share as at 30 April.

12-month NAV total return was 8.72% as at 30 April.

Annualised Total Returns	1Y	3Y	5Y	10Y
NAV	8.72%	7.84%	5.62%	8.20%
Share Price	15.83%	7.85%	1.76%	4.53%

Market Summary - April 2026

Relevant Interest Rate Announcements, Inflation and Market Outlook

·	Movements in risk-free rates were mixed across SEQI's investment regions, with U.S. 5-year Treasury yields increasing modestly to around 4.0%, U.K. 5-year swap rates rising to approximately 4.6%, and 5-year German Bund yields edging lower to around 2.8%.
·	Central banks in the U.S., U.K. and Eurozone maintained policy rates during April. While inflation has continued to moderate in some areas, expectations for monetary easing remain uncertain, reflecting ongoing geopolitical tensions, the potential for higher energy prices, and persistent inflationary pressures across all regions.
·	Markets continued to respond to developments in the Middle East following month-end, contributing to broader financial market volatility. Risk-free rate movements were driven more by evolving inflation expectations and geopolitical risk than by changes in monetary policy.
·	Against this backdrop, expectations for near-term rate cuts have been delayed, particularly in the U.S. and U.K., where higher energy prices and renewed inflationary pressures have reduced the likelihood of imminent easing.
·	SEQI benefits from its dynamic interest rate positioning, with 59.1% of the portfolio held in fixed-rate investments as at the end of April 2026.
·	The outlook for inflation, interest rates and broader financial markets remains closely linked to geopolitical developments. Prolonged instability, particularly if reflected in energy prices, could keep yields elevated and delay rate cuts, while de-escalation would likely support lower yields, improved market sentiment and a clearer path towards monetary easing.

Tariff Impact & Geopolitical Analysis

·	Geopolitical uncertainty remained elevated during April, notwithstanding the temporary U.S.-Iran ceasefire announced early in the month. While this initially eased pressure on oil prices, the fragility of the agreement, proposed U.S. tariffs on countries trading with Iran and continued Middle East tensions reinforced inflation risks and market volatility.
·	The direct impact on SEQI's portfolio remains limited, given its low short-term sensitivity to rising energy prices. The Investment Adviser continues to monitor potential secondary impact effects on borrowers.
·	SEQI's defensive positioning is supported by its high allocation to senior loans, representing 63.2% of the portfolio, alongside 52.4% exposure to defensive sectors including Digitalisation, Accommodation, Utilities and Renewables.
·	Market dislocation and potential credit spread widening may create selective opportunities to originate new loans at attractive risk-adjusted returns, subject to the prevailing macroeconomic and geopolitical backdrop.

Portfolio Update - 30 April 2026

Revolving Credit Facility and Cash Holdings

·

As at 30 April, the Company was net undrawn on its £300 million revolving credit facility and held cash of £56.0 million, inclusive of interest income. The Company also had net undrawn investment commitments of £138.2 million, with approximately £87.4 million of net deployments into new loans during May.

New Investment Activity - April 2026

·	Shortly after month-end, SEQI deployed $60.0 million towards a new 2nd lien financing of a U.S.-based mobile power generation platform. More information on this loan will be disclosed in the RNS NAV Announcement for May 2026.
·	During April 2026, Active Care Group ("ACG"), a U.K. national provider of accommodation and complex care services, drew £2.4 million, being the remaining portion of the £7.4 million top-up funding granted in February 2026.

Investments Maturing or Sold During April 2026

·	The Company sold its entire position in SL 4000 Connecticut LLC at a small premium to book value.

Portfolio Composition

·	The Company's invested portfolio consisted of 45 private debt investments and 2 infrastructure bonds, diversified across 8 sectors and 25 sub-sectors.
·	The weighted average loan life was 3.2 years.
·	Private debt investments which allow the Company to capture illiquidity yield premiums, represented 94.0% of the total portfolio.
·	The Company's portfolio remained geographically diversified, with 42.1% of investments located in the U.S, 23.6% in the U.K. and 34.3% in Europe.

Non-performing Loans - April 2026

·	The Company continues to work towards maximising recovery from the remaining non-performing loan in the portfolio (amounting to 0.3% of NAV).

Diversified Portfolio

Portfolio by Sector

Share Buybacks - April 2026

·	The Company bought back 9,214,110 of its ordinary shares at an average purchase price of 79.79 pence per share during April 2026.
·	The Company first started buying back shares in July 2022 and since then has spent £239.6 million buying back 297,721,193 ordinary shares by the end of April 2026, representing approximately 19% of the shares in issue as at month-end.
·	This share buyback programme by the Company continues to contribute positively to NAV accretion, generating 2.57 pence per share since the start of the programme in July 2022.
·	The Board applies a dynamic approach to share buybacks which takes into account available portfolio liquidity, the relative discount to NAV and other relevant factors. The share buyback programme will continue to remain in place.

Top Holdings - April 2026

Valuations are independently reviewed each month by PwC.

http://www.rns-pdf.londonstockexchange.com/rns/5550E_1-2026-5-15.pdf

http://www.rns-pdf.londonstockexchange.com/rns/5550E_2-2026-5-15.pdf
 

About Sequoia Economic Infrastructure Income Fund Limited

·	SEQI is the U.K.'s largest listed debt investor, investing in economic infrastructure private loans and bonds across a range of industries in stable, low-risk jurisdictions, creating equity-like returns with the protections of debt.
·	SEQI's loans are high quality and have robust covenants. SEQI lends to companies that have a track record of consistent cash flow generation and which are backed by physical assets. This enables SEQI to benefit from exposure to an asset class with robust fundamentals as well as the opportunity for attractive returns.
·	SEQI seeks to provide investors with regular, sustained, long-term income with opportunity to benefit from NAV upside from its well diversified portfolio. Investments are typically non-cyclical, in industries that provide essential public services or in evolving sectors such as energy transition, digitalisation or healthcare.
·	Since its launch in 2015, SEQI has provided investors with 11 years of quarterly income, consistently meeting its annual dividend per share target, which has grown from five pence in 2015 to 6.875 pence per share.
·	The Company has a comprehensive sustainability framework, combining sustainability goals, a proprietary ESG scoring methodology, alongside processes and metrics with alignment to key global initiatives.
·	SEQI is advised by SIMCo, a long-standing investment advisory team with extensive infrastructure debt origination, analysis, structuring and execution experience.
·	SEQI's monthly updates are available here: seqi.fund/investors/monthly-updates

For further information please contact:

Investment Adviser  Sequoia Investment Management Company Limited Steve Cook Dolf Kohnhorst Randall Sandstrom Anurag Gupta Matt Dimond	[phone] [e-mail]
Joint Corporate Brokers and Financial Advisers Jefferies International Limited Gaudi Le Roux Harry Randall	[phone]
J.P. Morgan Cazenove Rupert Budge William Simmonds	[phone]
Public Relations Teneo (Financial PR) Rob Yates Jessica Pine	[phone] [e-mail]
Alternative Investment Fund Manager (AIFM) FundRock Management Company (Guernsey) Limited Ben Snook Chris Hickling	[phone] [e-mail]
Administrator / Company Secretary Apex Fund and Corporate Services (Guernsey) Limited Aoife Bennett	[phone] [e-mail]

This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America. This announcement is not an offer of securities for sale into the United States.  The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration.  No public offering of securities is being made in the United States.

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[1] The dividend yield is calculated by dividing the annual dividend target by the relevant share price.

[2] The pull-to-par includes the mark-to-market of the Fund's interest rate swaps, capturing the valuation impact of hedging floating rate assets into fixed rate exposure.

 

END