NAV and Investment Update

Sequoia Economic Infra Inc Fd Ld

15 September 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 UPDATE & COMMENTARY - August 2026

The NAV per share for SEQI, the largest LSE listed infrastructure debt fund, increased to 91.50 pence per share from the prior month's NAV per share of 90.86 pence, representing an increase of 0.64 pence per share.

	pence per share
31 July NAV	90.86
Interest income, net of expenses	0.54
Asset valuations, net of FX movements	0.10
Subscriptions / share buybacks	0.00
31 August NAV	91.50

No expected material FX gains or losses are reflected in the NAV as the portfolio is approximately 100% currency-hedged. However, SEQI'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 - August 2026

Dividend yield of 8.03%[1], based on the closing share price of 85.60 pence as at 31 August and the annual dividend target of 6.875 pence per share.

Weighted average portfolio yield-to-worst ("YTW") was 9.73% as at 31 August, reflecting the portfolio's strong income returns.

Portfolio pull-to-par[2] (which is incremental to NAV as loans mature over time) was 4.3[3] pence per share as at 31 August.

12-month (to 31 August) share price total return was 18.41%.

Performance Highlights
Cumulative Total Returns	1Y	3Y	5Y
NAV	6.45%	22.59%	27.67%
Share Price	18.41%	32.92%	11.71%

Market Summary - August 2026

·	Risk-free rates increased across SEQI's key investment regions during August. The U.S. 5-year Treasury yield rose by approximately 0.04% to 4.49%, the UK 5-year Gilt yield by approximately 0.05% to 4.64%, and the German 5-year government bond yield by approximately 0.12% to 3.03%.
·	Inflationary pressures were most pronounced in the Eurozone, where headline inflation increased from 2.9% in July to 3.3% in August, driven primarily by higher energy prices. UK CPI also rose from 2.6% in June to 2.9% in July, although softer labour-market conditions partly moderated the upward pressure on rate expectations.
·	Central banks continue to balance persistent inflation against signs of weaker economic growth. The Bank of England maintained Bank Rate at 3.75% from July, while markets moved towards pricing a further ECB rate increase in September. The outlook remains sensitive to energy prices, geopolitical developments and the persistence of underlying inflation.
·		In a higher interest-rate environment, SEQI benefits from its dynamic interest-rate positioning, with 56.5% of the portfolio invested in fixed-rate instruments as at 31 August.

·	Credit spreads remain tight relative to historical averages. Any resulting market dislocation or spread widening may create opportunities for SEQI to originate new loans at attractive risk-adjusted returns, supported by its disciplined credit approach and flexible investment strategy.

Portfolio Update - August 2026

Revolving Credit Facility and Cash Holdings

·

As at 31 August, SEQI had drawn £120.5 million under its £300 million revolving credit facility and held cash of £91.6 million, inclusive of interest income, principally in preparation for a new loan investment completing shortly after the month end. Net undrawn investment commitments stood at £89.3 million.

New Investment Activity - August 2026

·	An increase in the loan to Exeltium S.A.S. a French electricity procurement vehicle supplying approximately 25 industrial clients under long-term take-or-pay contracts, of €7.7 million. The junior secured notes held by SEQI pay a fixed coupon of 9.4% and mature in December 2031.

Investments that Repaid - August 2026

·	A full repayment of £38.4 million was received in respect of Roseton, a dual-fuel power generation facility in New York State.
·	A full and final deferred consideration of $10.0 million was received as part of the sale to a third party of the Jetpeaks loan.

Portfolio Composition

·	SEQI's invested portfolio as at 31 August consisted of 47 private debt investments and 2 infrastructure bonds, diversified across 8 sectors and 24 sub-sectors.
·	Private debt investments which allow SEQI to capture illiquidity yield premiums, represented 94.1% of the total portfolio.
·	The weighted average loan life was 3.0 years.
·	SEQI's portfolio remained geographically diversified, with 42.5% of investments located in the U.S., 24.1% in the U.K. and 33.4% in Europe.

Non-performing Loans - August 2026

·	SEQI continues to work towards maximising recovery from two non-performing loans in the portfolio (representing 0.7% of NAV). There are no additional updates on non-performing loans during August.

Diversified Portfolio

Portfolio by Sector

Share Buybacks - August 2026

·	SEQI did not repurchase any ordinary shares during August 2026 as normal investor buying led to a narrowing of the discount to NAV.
·	SEQI first started buying back shares in July 2022 and since then to the end of August 2026, has spent £242.1 million buying back 300,905,720 ordinary shares.
·	The Board applies a dynamic approach to share buybacks which takes into account available portfolio liquidity, the relative trading discount to NAV per share and other relevant factors.
·	The share buyback programme will continue to remain in place and delivers a positive contribution to NAV per share.

Top Holdings - August 2026

Valuations are independently reviewed each month by PwC.

http://www.rns-pdf.londonstockexchange.com/rns/7165U_1-2026-9-14.pdf

http://www.rns-pdf.londonstockexchange.com/rns/7165U_2-2026-9-14.pdf

About Sequoia Economic Infrastructure Income Fund Limited

·	SEQI is the UK's largest listed debt fund, 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. It 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 5.0 pence in 2015 to 6.875 pence per share.
·	SEQI has a comprehensive sustainability framework, combining i) negative screening, ii) thematic investing (positive screening), both of which again received independent limited assurance this year, and iii) a proprietary ESG scoring methodology, which has been redesigned this year and now comprises a new ESG Risk Score and a new Externality Score. This new dual-scoring framework represents a significant evolution from the previous single-score approach and is designed to provide more structured, balanced, value-focused decision-useful insights.
·	SEQI is advised by SIMCo, a long-standing investment advisory team with extensive infrastructure debt origination, analysis, structuring and investment execution experience.
·	SEQI's monthly updates are available here: Seqifund/investors/monthly-updates

For further information please contact:

Investment Adviser  Sequoia Investment Management Company Limited Steve Cook Dolf Kohnhorst Randall Sandstrom Anurag Gupta	[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 Sodali Madeline Gordon-Foxwell	[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 SEQI's interest rate swaps, capturing the valuation impact of hedging floating rate assets into fixed rate exposure.

[3] Compared to revised pull to par of 4.2p for July 2026.

 

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