1st Sep 2015 10:02
LONDON (Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd on Tuesday said it intends to raise GBP200 million by issuing C shares in or around late October.
Confirmation of the plan comes about two weeks after the fund first said it was considering an additional capital raise.
In a statement on August 14, the fund said it was considering the fundraising due to interest from investors and the "attractive investment environment" in the economic infrastructure debt market combined with strong cash deployment since it launched.
The fund joined the London Stock Exchange in March, in an initial public offering that raised GBP150.0 million through an issuance of ordinary shares.
"The board is very focused on delivering on the target returns indicated at IPO but also recognise the benefits to all investors from a vehicle with greater scale and diversification. As such, the board believes that a C Share structure achieves the right balance between growing the fund to the benefit of investors and protecting existing shareholder returns," the fund said on Tuesday.
Ordinary shares in the fund were down 0.3% at 103.92 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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Sequoia Economic Infrastructure Fund