23rd Feb 2021 08:40
(Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd on Tuesday announced a placing to raise up to GBP172.9 million to repay outstanding debt and pursue new investment opportunities.
The FTSE 250-listed investor in economic infrastructure debt said the placing is for a maximum of 164.3 million shares at a price of 105.25 pence per share, representing a 4.0% premium to its unaudited net asset value of 101.23p per share as at January 29.
Shares in Sequoia Economic were down 1.1% at 107.03p in London on Tuesday.
Sequoia Economic said the proceeds will be used to repay outstanding debt under the revolving credit facility, so its investment adviser Sequoia Investment Management Co Ltd is able to re-draw the funds to deploy into the company's pipeline of opportunities. These include potential investments in data centres, electricity generation and supply and renewable energy, it added.
The investor stated it has cash of GBP64.9 million and outstanding drawings on its revolving credit facility of GBP208.7 million, with undrawn commitments valued at GBP114.6 million.
"The board and the investment adviser have placed great emphasis on enhanced monitoring of the company's portfolio of private debt investments, following the significant dislocation in market immediately following our equity issue in March of last year. Over this period, our portfolio has shown pleasing resilience and has benefited from an intentionally high allocation to defensive sectors such as telecommunications, utilities and renewables. With spreads narrowing, our net asset value has continued to recover and we have been able to sustain our dividend payout at 6.25p per year on a fully cash covered basis," said Chair Robert Jennings.
By Zoe Wickens; [email protected]
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