Sequoia Economic Infrastructure Fund Regulatory News (SEQI)

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

14 June 2021

Sequoia Economic Infrastructure Income Fund Limited

("SEQI" or the "Company")

NAV update

The NAV for SEQI, the specialist investor in economic infrastructure debt, increased to 102.41 pence per share from the prior month's NAV of 102.28 pence per share, representing an increase of 0.13 pence per share.

A full attribution of the changes in the NAV per share is as follows:

The decrease in asset valuations in the NAV attribution this month is primarily due to several sizeable US power positions being marked down as a result of the negative impact of the lower than expected 2022/2023 Base Residual Auction (BRA) PJM capacity results that were released this month and a significant price decline in one of our least liquid positions based on a small secondary trade in the bond near the end of May.

Portfolio update

The Investment Adviser, the Investment Manager, and PWC, the independent valuation agent, have continued their close analysis of the effects of COVID-19 on the Company's portfolio. The Investment Adviser expects the previously identified uplift in valuations of the assets where COVID-19 has impacted performance to continue. This trend is expected to persist as economies continue to recover and lockdowns start to further ease globally.

As at 28 May 2021, the Company had cash of £84.7m and had drawn £83.6m on its £280m Revolving Credit Facility. The Company also had undrawn commitments on existing investments collectively valued at £72.6m. The Company's invested portfolio comprised of 63 private debt investments and 11 infrastructure bonds across 8 sectors and 30 sub-sectors. It had an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 9.0% and a cash yield of 5.6%. The weighted average portfolio life is approximately 4.3 years. Private debt investments represented 94% of the total portfolio and 55% of the portfolio comprised floating rate assets. The weighted average purchase price of the Company's investments was 98.9% of par. Investments which are pre-operational represented 11.1% of total assets.

The Company's invested portfolio remains geographically diverse with 48% located across the US, 20% in the UK, 26% in Europe, and 6% in Australia/New Zealand. Currently the Company is not investing in Portugal or Italy but has selectively invested in opportunities in Spain. The Company's pipeline of economic infrastructure debt investments remains strong and is diversified by sector, sub-sector, and jurisdiction.

At month end, approximately 99% of the Company's NAV consisted of either Sterling assets or was hedged into Sterling. The Company has adequate resources to cover margin calls on its hedging book.

The Company's settled investment activities during May include:

· An additional £20.0m loan to Bulb Energy, an electricity supplier in the UK;

· An additional disbursement of $8.0m to Prime Data Centres for the development of a data centre campus in Sacramento, California;

· A €5.77m primary loan in Madrid Metro, a refinancing facility for rolling stock to the Madrid Metro;

· An additional $1.5m disbursement to Kaveh Ventures, a leading developer of hyperscale data centres in Ashburn, Virginia; and

· A €1.0m primary purchase of Ziton AS' Super Senior WCF 2022 loan backed by four offshore wind maintenance vessels.

None of the Company's investments were sold or prepaid in May.

Ordinary Portfolio Summary (15 largest settled investments)

Note (1) - excluding accrued interest

The Company's monthly investor report and additional portfolio disclosure will be made available at http://www.seqifund.com/.

LEI: 2138006OW12FQHJ6PX91

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.

For further information please contact:

Sequoia Investment Management Company +44 (0)20 7079 0480

Steve Cook

Dolf Kohnhorst

Randall Sandstrom

Greg Taylor

Anurag Gupta

Jefferies International Limited +44 (0)20 7029 8000

Gaudi le Roux

Neil Winward

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

Martin Pengelley

Elizabeth Snow

Laura Marshall

Praxis Fund Services Limited (Company Secretary) +44 (0) 1481 755530

Matt Falla

Katrina Rowe

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.