30th Nov 2015 11:35
LONDON (Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd, which invests in senior and subordinated economic infrastructure debt, on Monday said that about 83% of the GBP147.0 million net proceeds from its initial public offering have been deployed, including investments in the process of settling.
Advised by Sequoia Investment Management Company Ltd, the fund reported an annualised portfolio yield-to-maturity of 8.3% as recorded on September 30, and said it is on course to meet its targeted dividend yield of 5.0% for the first 12 months following its IPO in March.
The fund had a net asset value per ordinary share of 96.20 pence on September 30 on net assets of GBP144.3 million. The NAV per share was down from 98.0p at IPO.
The share price of 104.25p at that date was equivalent to an 8.37% premium to NAV per share.
The company raised GBP144.4 million through the issue of a separate, C share class on October 28.
"Looking to the second half of this financial year, your board continues to be satisfied with the portfolio?s performance to date and the strategy that is being employed by the investment adviser," Chairman Robert Jennings said in a statement.
The chairman said the company thinks its portfolio will deliver attractive risk-adjusted returns with a relatively low correlation to the broader financial markets.
"Global capital markets have been volatile over most of 2015, with political risk increasing in Europe as a result of the Greek crisis and the forthcoming UK referendum on EU membership; low commodity prices causing financial problems across a number of sectors; Chinese growth slowing; and heightened tensions in the Middle East. However, it is in such periods of volatility that the stability of infrastructure debt has historically demonstrated its real value to investors," Jennings said.
Shares in Sequoia Economic Infrastructure Income Fund were flat at 104.0p on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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