17th Aug 2026 07:00
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES
Sequoia Economic Infrastructure Income Fund Limited ("SEQI" or the "Company")
MONTHLY UPDATE & COMMENTARY - July 2026
The NAV per share for SEQI, the largest LSE listed infrastructure debt fund, decreased to 92.58 pence per share from the prior month's NAV per share of 93.62 pence, representing a decrease of 1.04 pence per share. Adjusted for the accrual of the dividend of 1.71875 pence per share declared in respect of the quarter ended 30 June 2026 and payable on 21 August 2026, the NAV per share post-distribution is 90.86 pence per share.
| pence per share |
30 June 2026 NAV | 93.62 |
Interest income, net of expenses | 0.64 |
Asset valuations, net of FX movements | -1.68 |
Subscriptions / share buybacks | 0.00 |
31 July NAV (pre-distribution) | 92.58 |
Quarterly Dividend | -1.72 |
31 July NAV (post-distribution) | 90.86 |
The decline in asset valuations resulted from a combination of the material increase in risk free rates during July and adjustments to investment valuations. The upward movement in risk free rates reduced the value of fixed-rate instruments. Investors are reminded that declines in unrealised mark to market adjustments should reverse over time as the investments approach their repayment date. Most of the decline in investment valuations was attributable to further adjustments relating to Active Care Group ("ACG") summarised in the new investment activity section below.
No expected material FX gains or losses are reflected in the NAV as the portfolio is approximately 100% currency-hedged. However, SEQI's NAV may include short-term unrealised FX gains or losses, arising from differences in the valuation methodologies between FX hedges and the underlying investments. These FX-related fluctuations will typically reverse over time.
Key Performance Highlights - July 2026
Dividend yield of 7.96%[1], based on the closing share price of 86.40 pence as at 31 July and the annual dividend target of 6.875 pence per share.
Weighted average portfolio yield-to-worst ("YTW") was 9.93% as at 31 July, reflecting the portfolio's strong income returns.
Portfolio pull-to-par[2] (which is incremental to NAV as loans mature over time) was 4.7 pence per share as at 31 July.
12-month share price total return was 17.36% as at 31 July.
Cumulative Total Returns | 1Y | 3Y | 5Y |
NAV | 4.56% | 20.28% | 24.78% |
Share Price | 17.36% | 37.16% | 14.19% |
Market Summary - July 2026
· | Risk-free rates increased across SEQI's key investment regions during July. The US 5-year Treasury yield rose by 0.26% to 4.45%, reflecting higher commodity prices, persistent inflation and concerns regarding the federal budget deficit. The UK 5-year Gilt yield increased by 0.27% to 4.59%, while the German 5-year Government Bond yield rose by 0.30% to 2.91%, as higher energy prices increased inflation expectations and reduced the prospect of near-term monetary easing.
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· | Following the US-Iran ceasefire-driven rally in June, market sentiment weakened as tensions in the Middle East escalated and shipping through the Strait of Hormuz was disrupted. Higher oil prices renewed concerns regarding energy supplies and inflation, contributing to a broadly synchronised rise in government bond yields across the US, UK and Eurozone.
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· | Central banks continue to balance persistent inflation against the risk of weaker economic growth. Prolonged geopolitical instability could keep yields elevated, while de-escalation and lower energy prices would likely support a clearer path towards rate cuts.
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In a higher interest-rate environment, SEQI benefits from its dynamic interest-rate positioning, with 55.4% of the portfolio invested in fixed-rate instruments as at 31 July. |
· | Credit spreads remain tight relative to historical averages. Any resulting market dislocation or spread widening may create opportunities for SEQI to originate new loans at attractive risk-adjusted returns, supported by its disciplined credit approach and flexible investment strategy.
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Portfolio Update - July 2026
Revolving Credit Facility and Cash Holdings
· | As at 31 July, SEQI had drawn £76.3 million under its £300 million revolving credit facility and held cash of £42.9 million, inclusive of interest income. Net undrawn investment commitments stood at £74.4 million. |
New Investment Activity - July 2026
· | SEQI advanced a further £5 million of senior debt to ACG, a UK national provider of accommodation and complex care services, under Facility C. The funding supports ACG's near-term funding requirements while the company progresses its strategic pivot to neuro-rehabilitation and the disposal programme of non-core assets. The Investment Adviser remains actively engaged with ACG and its senior lending group to stabilise performance and maximise value. Following this funding, SEQI's total exposure to ACG is £92.6 million, equivalent to 6.8% of NAV. The Board and AIFM, with the support of the Investment Adviser, will continue to closely monitor and manage the position to maximise value in the future. |
· | An additional loan to Sunrun for $5.0 million. The borrower is a leader in the US residential solar market. When swapped into SEQI's base currency, this is equivalent to a yield to maturity ("YTM") of approximately 12.72%. |
· | An additional senior loan to Grange Backup Power Ltd for €2.8 million. The borrower is an Irish power asset linked to a data centre. When swapped into SEQI's base currency, this is equivalent to a YTM of approximately 11.56%. |
· | A drawdown of €1.6 million 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. When swapped into SEQI's base currency, this is equivalent to a YTM of approximately 8.89%. |
Investments That Repaid - July 2026.
· | A full repayment for £15.8 million on SEQI's HoldCo loan to Project Griffin, to support the construction of a portfolio of seven fully permitted UK solar PV projects, with a combined installed capacity of approximately 430MW. |
Portfolio Composition
· | SEQI'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 3.1 years.
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· | Private debt investments which allow SEQI to capture illiquidity yield premiums, represented 94.2% of the total portfolio.
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· | SEQI's portfolio remained geographically diversified, with 44.3% of investments located in the U.S, 23.4% in the UK and 32.3% in Europe. |
Non-performing Loans - July 2026
· | SEQI continues to work towards maximising recovery from two non-performing loans in the portfolio (equal to 0.7% of NAV). There are no additional announcements during July. |
Diversified Portfolio
Portfolio by Sector
Share Buybacks - July 2026
· | SEQI did not repurchase any ordinary shares during July 2026.
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· | SEQI 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 July 2026.
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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.
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· | The share buyback programme will continue to remain in place and delivers a positive contribution to NAV per share.
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Top Holdings - July 2026
Valuations are independently reviewed each month by PwC.
http://www.rns-pdf.londonstockexchange.com/rns/8411Q_1-2026-8-15.pdf
http://www.rns-pdf.londonstockexchange.com/rns/8411Q_2-2026-8-15.pdf
About Sequoia Economic Infrastructure Income Fund Limited
· | SEQI is the UK'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. |
· | SEQI's loans are high quality and have robust covenants. It 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. |
· | 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. |
· | 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. |
· | SEQI 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. |
· | SEQI is advised by SIMCo, a long-standing investment advisory team with extensive infrastructure debt origination, analysis, structuring and execution experience. |
· | SEQI's monthly updates are available here: Seqifund/investors/monthly-updates |
For further information please contact:
Investment Adviser Sequoia Investment Management Company Limited Steve Cook Dolf Kohnhorst Randall Sandstrom Anurag Gupta | +44 (0)20 7079 0480
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Joint Corporate Brokers and Financial Advisers Jefferies International Limited Gaudi Le Roux Harry Randall | +44 (0)20 7029 8000 |
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J.P. Morgan Cazenove Rupert Budge William Simmonds
| +44 (0)20 7742 4000 |
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Public Relations Teneo (Financial PR) Rob Yates Jessica Pine
| +44 (0)20 7260 2700 |
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Alternative Investment Fund Manager (AIFM) FundRock Management Company (Guernsey) Limited Ben Snook Chris Hickling
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Administrator / Company Secretary Apex Fund and Corporate Services (Guernsey) Limited Aoife Bennett
| +44 (0)20 7592 0419 |
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This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America. This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.
[1] The dividend yield is calculated by dividing the annual dividend target by the relevant share price.
[2] The pull-to-par includes the mark-to-market of SEQI's interest rate swaps, capturing the valuation impact of hedging floating rate assets into fixed rate exposure.
Related Shares:
Sequoia Economic Infrastructure Fund