Sequoia Economic Infrastructure Income Fund Limited - Initial Issue and Share Issuance Programme

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Sequoia Economic Infrastructure Income Fund Limited ("SEQI" or the "Company")

Initial Issue targeting £250 million and Share Issuance Programme

Further to the announcement on 20 January 2020, the Board of Directors of SEQI (the "Board"), the specialist investor in economic infrastructure debt, is pleased to announce a proposed partially pre-emptive issue of Ordinary Shares seeking to raise £250 million of gross proceeds before expenses (the "Gross Issue Proceeds"), equivalent to up to 223,214,285 new ordinary shares of no par value (the "New Ordinary Shares"). The Board have determined that the New Ordinary Shares will be issued at a price of 112.0 pence per New Ordinary Share (the "Issue Price") (the "Initial Issue").

The Board recognises the importance of pre-emption rights to Ordinary Shareholders. Accordingly, 184,908,574 New Ordinary Shares are being initially offered to Qualifying Shareholders by way of the Open Offer pursuant to which they will be entitled to apply for 2 New Ordinary Shares for every 15 existing Ordinary Shares held at 6.00 p.m. on 6 February 2020 (the "Record Date"). The balance of the New Ordinary Shares, together with any New Ordinary Shares not taken up by Qualifying Shareholders under the Open Offer, will be made available under the Placing and/or Offer for Subscription of New Ordinary Shares.

The Company intends to use the proceeds raised from the Initial Issue (less expenses) (the "Net Issue Proceeds") to repay the drawn commitments under its £280 million Revolving Credit Facility ("RCF"). As at 31 December 2019, the Group had outstanding drawings on its RCF of £224 million and cash of £56.8 million, resulting in net leverage of £167.2 million. In addition, the Company had undrawn commitments on existing investments collectively valued at £92.7 million.  Any Net Issue Proceeds raised in excess of the amount drawn or committed under its RCF are expected to be deployed into the Company's near term pipeline of in excess of £380 million of investment opportunities, in accordance with the Company's Investment Policy.

The Company has also proposed to implement a share issuance programme for up to a maximum of 300,000,000 additional Ordinary Shares (the "Share Issuance Programme") excluding the target amount of shares available under the Initial Issue. The Share Issuance Programme is being created to provide the Company with flexibility should it wish to raise further capital over the next 12 months to either repay any future drawn down funds under the RCF or to directly invest in new investment opportunities.

Robert Jennings, Chairman of SEQI commented:

"The fundraise announced builds on a successful period over the current financial year. The Board is encouraged by the Net Asset Value per share progression and by the quality and depth of our investment pipeline. In May last year the Board were able to increase our dividend reflecting our Net Asset Value per share at that time. If current trends continue, we will again review our target payout early in the coming financial year. This is appreciably sooner than we had previously expected."

The Company expects to publish a prospectus (the "Prospectus") in connection with the Initial Issue and the Share Issuance Programme shortly. Unless otherwise defined, the terms used in this Announcement shall have the same meaning as set out in the Prospectus.

Jefferies International Limited ("Jefferies") is acting as sole sponsor, financial adviser and bookrunner to the Company.