NAV and Investment Update

pence per share

30 April 2026 NAV

92.27

Interest income, net of expenses

0.61

Asset valuations, net of FX movements

-0.21

Subscriptions / share buybacks

0.03

31 May 2026 NAV

92.70

Performance

Cumulative Total Returns

1Y

3Y

5Y

10Y

NAV

8.70%

23.32%

28.57%

81.05%

Share Price

10.76%

28.99%

10.09%

50.72%

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Risk-free rate movements were mixed across SEQI's investment regions during May. In the U.S., the 5-year Treasury yield increased modestly, with the risk-free rate rising by 0.15% to 4.15% at month-end, driven mainly by the U.S.-Iran standoff, energy-price concerns and higher inflation expectations. In the U.K., the 5-year risk-free rate decreased by 0.19% to 4.35%, reflecting weaker-than-expected U.K. economic data, which placed downward pressure on gilt yields despite broader global concerns around inflation and energy prices. In the Eurozone, the 5-year German Bund yield was broadly stable, with the risk-free rate decreasing slightly by 0.08% to 2.65%.

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Markets continued to respond to developments in the Middle East after May month-end, contributing to broader financial market volatility. Government bond yields increased between 0.10% and 0.15% across all three regions, driven primarily by renewed inflation concerns and the Iran conflict, rather than changes in monetary policy.

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Against this backdrop, expectations for near-term rate cuts have been delayed, as inflation pressures, geopolitical risk and local economic data continue to increase government bond yields. Prolonged instability, particularly if reflected in energy prices, could keep yields elevated and delay monetary easing, while de-escalation would likely support lower yields, improved market sentiment and a clearer path towards rate cuts.

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SEQI benefits from its dynamic interest rate positioning, with 55.5% of the portfolio held in fixed-rate investments as at the end of May 2026.

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Geopolitical uncertainty remained elevated during May, with markets continuing to focus on developments in the Middle East and the ongoing U.S.-Iran conflict. Concerns around potential disruption to oil supply and higher energy prices reinforced inflation risks and contributed to renewed volatility in government bond yields after month-end.

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Tariff-related risks also remained relevant, particularly in the U.S., where the potential impact on goods prices, supply chains and inflation expectations continued to influence the market outlook. These risks, together with geopolitical tensions, contributed to a more cautious backdrop for monetary policy and financial markets.

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SEQI's defensive positioning is supported by its high allocation to senior loans, representing 59.3% of the portfolio, alongside 48.6% exposure to defensive sectors including Digitalisation, Accommodation, Utilities and Renewables.

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Market dislocation and potential credit spread widening may create selective opportunities to originate new loans at attractive risk-adjusted returns, subject to the prevailing macroeconomic and geopolitical backdrop.

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As at 31 May, the Company had drawn £80.6 million under its £300 million revolving credit facility and held cash of £22.7 million, inclusive of interest income. Net undrawn investment commitments stood at £70.0 million. In line with SEQI's gearing policy, the debt facility is expected to remain drawn in the near term as loan repayments are expected to be lower than usual in the near-term until they accelerate in the second half of the year.

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A fully drawn Second Lien loan for $60.0 million to Life Cycle Power, a U.S.-based mobile power generation platform providing distributed multi-fuel generation solutions to utilities, energy, commercial and industrial, and data centre customers. The yield-to-maturity on this loan, taking account of upfront fees, is 10.39%.

·

A fully drawn HoldCo equity bridge loan of £37.5 million to Project Eagle, supporting the acquisition of a minority stake in a U.K.-based energy-from-waste operator. The yield-to-maturity on this loan, taking account of upfront fees, is 8.98%.

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A first drawdown of €5.8 million on SEQI's new mezzanine financing commitment to Portuguese High-Speed Rail, a project company developing a high-speed railway line in Portugal connecting Porto to Aveiro, forming part of the wider Lisbon-Porto high-speed rail corridor. SEQI's total commitment is €24.0 million. The yield-to-maturity on this loan, taking account of upfront fees, is 10.94%.

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An additional loan to Sunrun for $1.9 million. The borrower is a leader in the U.S. residential solar market. The YTM on this loan, taking account of upfront fees, is 13.57%.

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The Company's invested portfolio consisted of 48 private debt investments and 2 infrastructure bonds, diversified across 8 sectors and 26 sub-sectors.

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The weighted average loan life was 3.2 years.

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Private debt investments which allow the Company to capture illiquidity yield premiums, represented 94.3% of the total portfolio.

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The Company's portfolio remained geographically diversified, with 43.3% of investments located in the U.S, 24.4% in the U.K. and 32.3% in Europe.

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The Company's senior secured loan on Project Poland PV (solar renewable energy, which represents 0.9% of the portfolio) has also been reclassified as non-performing, with the current NAV reflecting the latest assessment of the loan. Following financial stress in the wider group, the borrower on this loan has undergone a change of control and is now ultimately owned by affiliates of Brookfield Corporation, and various group entities (including our Borrower) have filed for voluntary Chapter 11 process in the United States Bankruptcy Court. This has been done to stabilise the platform and to implement an orderly restructuring, and recapitalisation, of the group under its new ownership. Our specific solar projects, over which our loan holds senior security, remain valuable assets of that group. The Investment Adviser is actively engaged with all stakeholders on this situation and further updates will be provided as the situation develops.

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The Company continues to work towards maximising recovery from the remaining non-performing loan in the portfolio (amounting to 0.2% of the portfolio).

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The Company bought back 3,184,527 of its ordinary shares at an average purchase price of 78.20 pence per share during May 2026.

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The Company first started buying back shares in July 2022 and since then has spent £242.1 million buying back 300,905,720 ordinary shares by the end of May 2026, representing approximately 19% of the shares in issue as at month-end.

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The Board applies a dynamic approach to share buybacks which takes into account available portfolio liquidity, the relative trading discount to NAV per share and other relevant factors. The share buyback programme will continue to remain in place and delivers a positive contribution to NAV per share.

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SEQI is the U.K.'s largest listed debt fund, investing in economic infrastructure private loans and bonds across a range of industries in stable, low-risk jurisdictions, creating equity-like returns with the protections of debt.

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SEQI's loans are high quality and have robust covenants. SEQI lends to companies that have a track record of consistent cash flow generation and which are backed by physical assets. This enables SEQI to benefit from exposure to an asset class with robust fundamentals as well as the opportunity for attractive returns.

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SEQI seeks to provide investors with regular, sustained, long-term income with opportunity to benefit from NAV upside from its well diversified portfolio. Investments are typically non-cyclical, in industries that provide essential public services or in evolving sectors such as energy transition, digitalisation or healthcare.

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Since its launch in 2015, SEQI has provided investors with 11 years of quarterly income, consistently meeting its annual dividend per share target, which has grown from 5.0 pence in 2015 to 6.875 pence per share.

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The Company has a comprehensive sustainability framework, combining i) negative screening, ii) thematic investing (positive screening), both of which again received independent limited assurance this year, and iii) a proprietary ESG scoring methodology, which has been redesigned this year and now comprises a new ESG Risk Score and a new Externality Score. This new dual-scoring framework represents a significant evolution from the previous single-score approach and is designed to provide more structured, balanced, value-focused decision-useful insights.

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SEQI is advised by SIMCo, a long-standing investment advisory team with extensive infrastructure debt origination, analysis, structuring and execution experience.

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SEQI's monthly updates are available here: seqi.fund/investors/monthly-updates

Investment Adviser 

Sequoia Investment Management Company Limited

Steve Cook

Dolf Kohnhorst

Randall Sandstrom

Anurag Gupta

Matt Dimond

+44 (0)20 7079 0480

[email protected]

Joint Corporate Brokers and Financial Advisers

Jefferies International Limited

Gaudi Le Roux

Harry Randall

+44 (0)20 7029 8000

J.P. Morgan Cazenove

Rupert Budge

William Simmonds

+44 (0)20 7742 4000

Public Relations

Teneo (Financial PR)

Rob Yates

Jessica Pine

+44 (0)20 7260 2700

[email protected]

Alternative Investment Fund Manager (AIFM)

FundRock Management Company (Guernsey) Limited

Ben Snook

Chris Hickling

[email protected]

Administrator / Company Secretary

Apex Fund and Corporate Services (Guernsey) Limited

Aoife Bennett

+44 (0)20 7592 0419

[email protected]