NAV and Investment Update

Sequoia Economic Infra Inc Fd Ld

15 July 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 - June 2026

The NAV per share for SEQI, the largest LSE listed infrastructure debt fund, increased to 93.62 pence per share from the prior month's NAV per share of 92.70 pence, representing an increase of 0.92 pence per share.

	pence per share
31 May 2026 NAV	92.70
Interest income, net of expenses	0.53
Asset valuations, net of FX movements	0.39
Subscriptions / share buybacks	0.00
30 June 2026 NAV	93.62

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.

Notice of AGM

The Annual General Meeting ("AGM") of the Company will be held at 1 Royal Plaza, Royal Avenue, St Peter Port, Guernsey, GY1 2HL on 28 July 2026 at 10:00 a.m. As well as customary AGM business, the Company is also proposing amendments to (i) its investment policy to expand the geographic investment framework within the Company's current investment policy and (ii) its articles of association.

The Circular containing full details of the resolutions to be considered at the AGM, including details of the proposed changes to the Company's investment policy and articles of association and Notice of AGM, has been posted to shareholders, and a copy, together with the text of the proposed changes to the Company's articles of association, is available on the Company's website at https://www.seqi.fund/investors/documents-circulars/#circulars.

Key Performance Highlights - June 2026

Dividend yield of 8.34%[1], based on the closing share price of 82.40 pence as at 30 June and the annual dividend target of 6.875 pence per share.

Weighted average portfolio yield-to-maturity was 9.66% as at 30 June, reflecting the portfolio's strong income returns.

Portfolio pull-to-par[2] (which is incremental to NAV as loans mature over time) was 4.2 pence per share as at 30 June.

12-month share price total return was 10.17% as at 30 June.

Cumulative Total Returns	1Y	3Y	5Y
NAV	8.86%	24.54%	28.94%
Share Price	10.17%	38.74%	9.72%

Market Summary - June 2026

·	Risk-free rate movements were broadly stable across SEQI's investment regions during June.  In the US, the 5-year Treasury yield increased modestly, with the risk-free rate rising by 0.04% to 4.19% at month-end, whilst the Federal Reserve maintained its policy rate, noting that inflation remained above its 2.0% target. In the UK, the Bank of England also left its policy rate unchanged at its June meeting, citing above-target inflation and uncertainty surrounding energy prices. The UK 5-year Gilt yield declined by 0.15% to 4.30% by the end of the month, as investors priced in lower medium-term interest rates and sought safe-haven government bonds amid global uncertainty. The resignation of the Prime Minister had limited impact on the markets, having been largely anticipated. The German 5-year Government Bond yield declined marginally by 0.09% to 2.60% due to moderating inflation expectations in the European Union.
·	Global financial markets responded positively during June to the ceasefire agreement between the US and Iran and the announced framework for reopening the Strait of Hormuz, which initially eased concerns over potential disruption to global energy supplies. This positive sentiment was supported by broadly stable government bond yields over the month. Following the month end, tensions between the US and Iran escalated during July, placing the ceasefire under significant strain and renewing concerns over the security of the Strait of Hormuz and potential disruption to global energy supplies. Government bond yields across SEQI's key jurisdictions increased by approximately 0.10%-0.15% between the end of June and 10 July.
·	Against this backdrop, expectations for near-term rate cuts have been delayed, as inflation pressures, geopolitical risk and local economic data may continue to increase government bond yields. Prolonged instability, particularly if reflected in energy prices, could keep yields elevated and delay monetary easing, while de-escalation would likely support lower yields, improve market sentiment and would enable a clearer path towards rate cuts.
	In a higher interest-rate environment, SEQI benefits from its dynamic interest-rate positioning, with 54.8% of the portfolio invested in fixed-rate instruments as at 30 June.

·

Tariff-related risks also remained relevant, particularly in the US, where the potential impact on goods prices, supply chains and inflation expectations continued to influence the market outlook. These risks, together with geopolitical tensions, contributed to a more cautious backdrop for monetary policy and financial markets.

·

While high-yield credit spreads remain tight relative to historical averages, the asset class continues to offer an attractive yield premium. Any further market dislocation or credit spread widening may create selective opportunities to originate new loans at compelling risk-adjusted returns, although the outlook remains sensitive to energy costs, growth expectations and the broader macroeconomic and geopolitical backdrop.

Portfolio Update - June 2026

Revolving Credit Facility and Cash Holdings

·	As at 30 June, the Company had drawn £92.7 million under its £300 million revolving credit facility and held cash of £42.1 million, inclusive of interest income. Net undrawn investment commitments stood at £67.9 million.

New Investment Activity - June 2026

·	An additional loan to Sunrun for $7.0 million. The borrower is a leader in the U.S. residential solar market. The YTM on this loan, taking account of upfront fees, was 13.41%.
·	A HoldCo loan of £2.4 million to Project Griffin to support the construction of a portfolio of seven fully permitted UK solar PV projects, with a combined installed capacity of approximately 430 MW. The YTM on this loan was 7.76%.

No investments repaid during June 2026.

Portfolio Composition

·	The Company's invested portfolio consisted of 49 private debt investments and 2 infrastructure bonds, diversified across 8 sectors and 26 sub-sectors.
·	The weighted average loan life was 3.2 years.
·	Private debt investments which allow the Company to capture illiquidity yield premiums, represented 94.4% of the total portfolio.
·	The Company's portfolio remained geographically diversified, with 43.4% of investments located in the U.S, 24.7% in the UK and 31.9% in Europe.

Non-performing Loans - June 2026

·	The Company continues to work towards maximising recovery from two non-performing loans in the portfolio (equal to 1.0% of NAV). There are no additional announcements during June.

Diversified Portfolio

Portfolio by Sector

Share Buybacks - June 2026

·	The Company did not repurchase any ordinary shares during June 2026.
·	The Company first started buying back shares in July 2022 and since then has spent £242.1 million buying back 300,905,720 ordinary shares by the end of June 2026.
·	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 - June 2026

Valuations are independently reviewed each month by PwC.

http://www.rns-pdf.londonstockexchange.com/rns/3483M_1-2026-7-14.pdf

http://www.rns-pdf.londonstockexchange.com/rns/3483M_2-2026-7-14.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. 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 5.0 pence in 2015 to 6.875 pence per share.
·	The Company 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 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 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.

 

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