14th Jun 2021 08:57
(Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd on Monday said net asset value per share edged up to 102.41 pence in May from 102.28p in April.
The London-based investor in infrastructure debt said that its net asset value per share increased in May's attribution after a 0.48 pence rise in interest income, net of expenses, which offset a 0.36p decrease in asset valuation.
Sequoia Economic said the drop in asset valuations in May followed the mark down of several large US power positions after lower-than-expected performance in PJM Interconnection's May 2022-23 base residual auction capacity results. PJM is a regional electricity transmission organization in the US. The drop in asset valuation also was associated with a lower price of one of Sequoia's "least liquid positions based on a small secondary trade in the bond near the end of May," the company said.
Sequoia Economic said its investment adviser and manager, alongside an independent PricewaterhouseCoopers valuation agent, have noted an "uplift in valuations" of assets impacted by the global pandemic. This trend is expected to continue as global lockdowns ease and economies gradually recover.
The FTSE 250-listed company said that, as of May 28, it had GBP84.7 million in cash and GBP83.6 million drawn on its GBP280 million revolving credit facility. Sequoia Economic also has undrawn commitments on existing investments collectively valued at GBP72.6 million.
Sequoia Economic's investment portfolio includes 63 private debt investments and 11 infrastructure bonds, with a weighted average life term of 4.3 years. Investments cover the transport, energy, telecommunications and health care industries. The portfolio has an annualised yield-to-maturity of 9.0% and a cash yield of 5.6%.
Investment activities settled through May included a further GBP20 million loan to UK electric supplier Bulb Energy; a disbursement of USD8.0 million to Prima Data Centres for a development in Sacramento, California; and a EUR5.8 million primary loan in Madrid Metro to refinance rolling stock.
Sequoia Economic shares were trading up 0.2% at 109.60 pence each in London on Monday morning.
By Scarlett Butler; [email protected]
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