Sequoia Economic ups asset value, arranges acquisition facility

Wed, 15th Nov 2023 11:48

(Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd on Wednesday said it arranged a GBP56 million bilateral loan to finance Pioneer Point Partners LLP's upcoming acquisition of Esken Renewables.

The London-based income fund, also known as SEQI, said its net asset value at October 31 was 91.84 pence per share, up 0.7% from 91.16p on September 29.

Shares in Sequoia Economic were up 2.2% at 85.40p each on Wednesday morning in London.

SEQI, which invests in various infrastructure sectors including transport, renewables and accommodation, also announced the arranging of a GBP56 million private bilateral loan facility. This will finance the purchase of Widnes, England-based biomass fuel supplier Esken Renewables by Pioneer Infrastructure Partners SCSp, a sustainable infrastructure fund managed by Pioneer Point.

SEQI expects the proposed acquisition, which it said represents a GBP107.7 million enterprise value, to complete in early December.

Sequoia also said it repurchased 14.3 million shares at 77.78p each on average during October, and as of the end of the month has repurchased 101.4 million shares since starting buybacks in July 2022.

The firm noted "the current period of market volatility", but said its investment advisor expects this volatility to reduce over time.

"This represents a helpful tailwind to the company's NAV in the years ahead, as falling interest rates are expected to increase the value of SEQI's underlying portfolio," Sequoia added.

By Emma Curzon, Alliance News reporter

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Sequoia Economic Infrastructure Fund