Sequoia Economic Infrastructure makes good use of funds raised

Specialist investor in economic infrastructure debt, Sequoia Economic Infrastructure, announced its results for the year ended 31 March on Thursday, reporting annualised portfolio yield-to-maturity of 8.2% as at period end.

The FTSE 250 firm claimed a dividend yield of 6p per share, adding that it deployed £157.4m in the year, which was raised via an open offer, placing and offer for subscription in May last year.

It described its portfolio as “diversified”, with 56 investments made across eight sectors, 23 sub-sectors and 10 jurisdictions.

The board said 79% of its investments were in private debt, and 64% were with floating rate linkage.

Its ongoing charges figure was 0.94%, calculated in accordance with AIC guidance, and down from 1.05% for the year ended 31 March 2017.

On the financial front, as at 31 March total net assets stood at £758,170,202, with the net asset value per ordinary share being 101.32p.

The company’s ordinary share price at year-end was 106.00p, making for an ordinary share premium to net asset value of 4.6%.

Since year-end, the company had conducted an oversubscribed placing in May, which raised net proceeds of around £74.8m.

“The board is pleased to report another good year for SEQI,” said chairman Robert Jennings.

“This is reflected in a portfolio yield of over 8%, we have maintained our dividend at 6p per share, and we successfully raised £157.4m in May 2017 and a further £74.8m in May 2018.”

Jennings said the company was “delighted” both with the rate at which it was allocating its capital, and the pipeline of opportunities it had identified.

“Looking forward, the opportunity for SEQI in economic infrastructure debt is exciting.

“The asset class remains under-invested and continues to offer attractive risk-adjusted returns.

“The board has conviction in the long-term direction of SEQI and believes that shareholders will continue to benefit from the resilience afforded by an attractive pipeline of infrastructure projects.”