Sequoia Economic Infrastructure Income Fund Limited (LON:SEQI), the specialist investor in economic infrastructure debt, today announced its Interim Results for the period from 1 April 2018 to 30 September 2018.
HIGHLIGHTS
· Annualised portfolio yield-to-maturity of 8.4% as at 30 September 2018
· Dividends of 3p per Ordinary Share paid during the period
· Raised gross proceeds of £75.7 million through an over-subscribed Placing of Ordinary Shares in May 2018
· Diversified portfolio of 58 investments made across 8 sectors, 25 sub-sectors and 13 mature jurisdictions
o 87% of investments in private debt
o 66% floating rate investments, capturing short-term rate rises
o Short weighted average life of 5.0 years creating re-investment opportunities
o Weighted average equity cushion of 32%
· Ongoing charges ratio of 1.06% (calculated in accordance with AIC guidance). The ongoing charges ratio against the average gross value of the portfolio in the period is 0.98%.
Post-period-end
· Announced an additional capital raise in August 2018 which closed, significantly over-subscribed, in October 2018 with gross proceeds of £253.0 million
o Proceeds have been used to repay the outstanding balance of approximately £116.0 million of the £150.0 million multi-currency revolving credit facility (“RCF”)
o Remaining proceeds will be deployed into the strong pipeline of attractive investment opportunities
Financial Highlights at 30 September 2018
|
Total net assets |
£837,121,761 |
|
Net Asset Value (‘NAV’) per Ordinary Share * |
101.86p |
|
Ordinary Share price * |
110.50p |
|
Ordinary Share premium to NAV |
8.5% |
* Cum dividend
Robert Jennings, Chairman of Sequoia, said:
“The Board is pleased with the Company’s continued progress in the first half of this financial year. Economic infrastructure debt remains an under invested and attractive asset class, given its low correlation to the volatility of the wider equity markets and high recovery rates.
“The balance of floating rate and shorter term fixed investments means that the portfolio is also well positioned to benefit from a rising interest rate environment. We remain confident in the Investment Adviser’s ability to grow the diversified portfolio and source high quality, stable, cash generative economic infrastructure debt investment opportunities that will enable us to maintain portfolio yield at 8% or higher and an annual dividend of 6p per share.”
