Sequoia Economic Infrastructure - Interim Results

 

SEQUOIA ECONOMIC INFRASTRUCTURE INCOME FUND LIMITED

(the "Company" or "SEQI")

2019/20 INTERIM RESULTS

DIVERSE AND CASH-GENERATIVE PORTFOLIO

INCREASED DIVIDEND TARGET

SEQI, the specialist investor in economic infrastructure debt, announces its results for the period ended 30 September 2019. 

HIGHLIGHTS 

·     

Annualised portfolio yield-to-maturity of 8.2% as at 30 September 20191

 

·     

Dividends of 3.0625p per Ordinary Share paid during the period; increased dividend target from 6p to 6.25p per share announced in May 2019

 

·     

Two over-subscribed equity issues:

 

Raised gross proceeds of £216.0 million through an over-subscribed Open Offer, Placing and Offer for Subscription of Ordinary Shares in June 2019

 

Raised gross proceeds of £138.8 million through an over-subscribed Placing of Ordinary Shares in September 2019

 

·     

Increasingly diversified portfolio of 78 investments made across 8 sectors, 30 sub-sectors and 13 mature jurisdictions

 

88% of investments in private debt

72% floating rate investments, capturing short-term rate rises

Short weighted average life of 4.2 years creating re-investment opportunities

Weighted average equity cushion of 37%

 

·     

Continued low ongoing charges ratio of 0.95% (calculated in accordance with AIC guidance)1

 

·     

Investment Adviser committed to implementing Environmental, Social and Governance ("ESG") policy as part of the credit process, with the goal of full implementation by 2020 to support the sustainability of the Company's business model and preserve long-term shareholder value

 

·     

Portfolio is well positioned to benefit from a rising interest rate environment given the balance of floating rate and shorter-term fixed investments

[1] See appendix

 

Financial Highlights at

30 September 2019

31 March 2019

Total gross assets under management ("AUM")

£1,543,120,604

£1,216,799,963

Total net assets

£1,459,847,194

£1,097,139,421

Net Asset Value ('NAV') per Ordinary Share *

105.30p

103.41p

Ordinary Share price *

115.60p

113.00p

Ordinary Share premium to NAV

9.8%

9.3%

* Cum dividend

Robert Jennings, Chairman of the Company, said:

"I am pleased to report another good first half year performance. The strength of the Fund's performance in the four-and-a-half years since listing means that we have been able to raise our targeted dividend pay out for the first time. Even after the substantial 4.2% increase in this target, net asset value per share grew by 1.8% over the half year. Gross assets under management increased by over £300 million, reflecting substantial and attractive opportunities to debt finance economic infrastructure providers. The Board remains confident in the business model and strategy."