Last checked at 
15 Jan 2018 07:00
15 January 2018
Sequoia Economic Infrastructure Income Fund Limited
Net Asset Value as at 29 December 2017 and Investment Update
Ordinary Share update
SEQI's NAV increased to 101.81p per share from 101.36p per share on 30 November 2017 which arose primarily through:
· Interest income net of expenses of 0.58p;
· A decrease of 0.06p in asset valuations;
· A decrease of 0.07p from FX movements.
The Company's invested portfolio represented 88.6% of the Company's NAV, with an additional £70.6m either traded but not settled or undrawn commitments. The total portfolio, including both acquired assets and assets which the Company has committed to buy but remain unsettled or undrawn, represented 97.8% of the Company's NAV.
The total portfolio comprised a total of 55 investments collectively valued at £750.4m (including accrued interest): 36 private debt investments and 19 infrastructure bonds across 8 sectors and 23 subsectors.
The total portfolio had an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 8.0% and a weighted average life of approximately 5.0 years. Private debt investments represented 75% of the total portfolio and 55% of it comprised floating rate assets. The weighted average purchase price of the Company's investments was c.95.5% of par. Investments which are pre-operational represented 17.4% of total assets.
As at 29 December 2017, approximately 95% of NAV consisted of either Sterling assets or was hedged into Sterling. The Company has adequate resources to cover the cash costs associated with its hedging activities.
The Company's settled investment activities during December include:
· A £20m primary loan to Bulb Energy, a UK renewables energy supplier;
· A $19.6m secondary loan to Project Argon, a loan backed by eight mid-life aircraft;
· A €10m primary loan to Kraftwerk Obernburg, a German combined heat and power plant;
· $10m of Adani Abbot 4.45% 2022 bonds, a coking coal export terminal in Australia;
· An additional $850k disbursement to Sunrun, a US residential solar company.
Lastly, the €8.6m loan to Latecoere prepaid in line with the Company's expectations.
Ordinary Portfolio Summary (15 largest settled investments)
Transaction name | Currency | Type | Ranking | Value £m(1) | Sector | Sub-sector | Yield to maturity / worst (%) |
A'lienor S.A.S. (A65) | EUR | Private | Senior | 39.6 | Transport | Road | 6.1(2) |
Hawaiki Mezzanine Loan | USD | Private | Mezz | 38.7 | TMT | Undersea cable | 11.6 |
IO Data Centers | USD | Private | Senior | 37.0 | TMT | Data centers | 9.0 |
Cory Environmental | GBP | Private | HoldCo | 31.3 | Utility | Waste-to-energy | 8.5 |
Regard Group Mezzanine | GBP | Private | Mezz | 29.4 | Accomm. | Health care | 12.1 |
Abteen Ventures | USD | Private | Senior | 25.9 | TMT | Data centers | 8.0 |
Aquaventure | USD | Private | Senior | 25.9 | Utility | Water | 7.7 |
Warnow Tunnel | EUR | Private | Senior | 20.8 | Transport | Road | 6.8 |
Natgasoline | USD | Private | Mezz | 20.4 | Other | Industrial infra | 10.0 |
Bulb Energy | GBP | Private | Senior | 20.0 | Utility | Electricity Supply | 9.0 |
Exeltium Mezzanine | EUR | Private | Mezz | 19.6 | Power | PPA | 9.4 |
Welcome Break No.1 Ltd | GBP | Private | Mezz | 18.3 | Transport | Motorway services | 8.4 |
NGG Finance 5.625% 2073 | GBP | Public | Mezz | 17.0 | Utility | Elec. distribution | 3.6 |
Terra-Gen Power TL B | USD | Private | Senior | 16.8 | Renewables | Solar & wind | 8.3 |
Neoen Production | EUR | Private | HoldCo | 15.6 | Renewables | Solar & wind | 7.0 |
Note (1) - excluding accrued interest
Note (2) - Yield-to-date of expected refinancing.
Market Summary
A total of 23 project finance transactions closed in December throughout the Company's eligible jurisdictions, worth $7.9bn in aggregate. Notable transactions during the month include:
· The $826m additional financing of the 250MW Silver Slate Solar Facility in Primm, Nevada;
· The £835m refinancing of rolling stock for the Greater Anglia franchise;
· The $189.1m bond issue for the redevelopment of a terminal at Denver International Airport, and;
· The €446.3m refinancing of Covanta's 58MW Waste-to-Energy plant in Dublin, consisting of €396.3m of senior debt and €50m of junior debt.
In December, estimates of US economic growth for Q3 2017 was estimated at 3.2% by the Commerce Department. The US economy added 148k jobs, keeping the unemployment rate at 4.1%.
The Eurozone experienced its strongest quarterly growth in almost seven years, with 0.8% growth. The UK economy remained steady, with 0.5% growth. During December, the Euro strengthened and the US Dollar weakened against Sterling ending the month at €1.1250 and $1.3524 respectively.
The Company's monthly investor report and additional portfolio disclosure will be made available at http://www.seqifund.com/.
LEI: 2138006OW12FQHJ6PX91
For further information please contact:
Sequoia Investment Management Company +44 (0)20 7079 0480
Steve Cook
Dolf Kohnhorst
Randall Sandstrom
Greg Taylor
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Neil Winward
Mark Bloomfield
Gaudi Le Roux
Tulchan Communications (Financial PR) +44 (0)20 7353 4200
James Macey White
Martin Pengelley
Elizabeth Snow
Praxis Fund Services Limited (Company Secretary) +44 (0) 1481 755528
Shona Darling
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.