REG - Sequoia Econ Infra - NAV and Investment Update

Sequoia Economic Infrastructure Income FundAnnouncement

17/11/2025 07:00

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RNS Number : 6926H  Sequoia Economic Infra Inc Fd Ld  17 November 2025

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 FACTSHEET & COMMENTARY - October 2025

 

The NAV per share for SEQI, the largest LSE-listed infrastructure debt fund,
increased to 94.90 pence per share from the prior month's NAV per share of
93.67 pence, representing an increase of 1.23 pence per share. Adjusted for
the accrual of the dividend of 1.71875 pence per share declared in respect of
the quarter ended 30 September 2025 and payable on 21 November 2025, the NAV
per share post-distribution is 93.18 pence.

                                         pence per share
 30 September NAV                                  93.67
 Interest income, net of expenses                   0.57
 Asset valuations, net of FX movements*             0.63
 Subscriptions / share buybacks                     0.03
 31 October NAV (pre-distribution)                 94.90
 Dividend                                          -1.72
 31 October NAV (post-distribution)                93.18

 

 

 

No expected material FX gains or losses as the portfolio is approximately 100%
currency-hedged. However, the Company's NAV may include unrealised short-term
FX gains or losses, driven by differences in the valuation methodologies of
its FX hedges and the underlying investments - such movements will typically
reverse over time.

 

Well positioned to benefit from current high interest rates; the portfolio has
a fixed-rate exposure of 58.7% as of October 2025.

 

Market Summary

 

Interest Rate Announcements and Inflation

 

 ·           The Federal Reserve announced a rate cut on 29 October, lowering the base rate
             from 4.0% to 3.75%, and marking the second rate cut for 0.25% in two months.
             The yield on 10-year U.S. Treasuries declined marginally from 4.2% to 4.1%
             during the same period and the market is pricing in at least one further rate
             cut for 0.25% by January 2026.

 ·           The Bank of England held the base rate at 4.00% during October. UK gilt yields
             fell sharply by around 0.3% to 4.50% during the same period, due to softer
             inflation data and rising expectations of Bank of England rate cuts. Gilt
             yields continued to trend lower post month-end following expectations of tax
             increases in the upcoming Autum Budget, and market participants are pricing in
             an 80% chance of a rate cut at the Bank of England's next announcement in
             December 2025.

 ·           The European Central Bank has held its policy rate steady at 2.00% since
             September, citing subdued economic growth and moderating inflation across the
             Eurozone. In October, 10-year German Bund yields drifted lower by roughly 10
             basis points. Market consensus points to the ECB maintaining its current
             stance for now, with no rate cuts expected in the near term.

 ·           As global monetary conditions begin to ease, inflation remains above target
             and sustained geopolitical tensions continue to weigh on the outlook. Central
             banks are proceeding cautiously, seeking to support growth through gradual
             rate cuts while mitigating the risk of renewed inflationary pressures.

 ·           The pace of policy easing is expected to diverge, with the U.S. and the UK
             likely to move ahead of the Eurozone, which is expected to maintain a more
             measured stance. As interest rates decline, alternative assets such as
             infrastructure are poised to become increasingly attractive relative to liquid
             debt.

 

Tariff Impact & Geopolitical Analysis

 

 ·           During October, the U.S. and China reached a one-year trade truce during the
             APEC 2025 summit, under which Washington agreed to cut its fentanyl-related
             tariff on Chinese goods from 20% to 10%.

 ·           The U.S. and EU continue to operate under the broader Agreement on Reciprocal,
             Fair, and Balanced Trade (August 2025 framework). It sets ceilings on U.S.
             tariffs on EU goods (e.g. 15%) and commits the EU to eliminate or reduce
             certain tariffs on U.S. industrial exports.

 ·           On 30 October 2025, the U.S. Senate passed a motion (51-47) to rescind the
             broad "national-emergency" tariff basis (under International Emergency
             Economic Powers Act - IEEPA). This signals heightened legislative scrutiny of
             sweeping tariffs, which may reduce the risk of broad new tariffs on EU or UK
             goods.

 

Portfolio Update

 

Revolving Credit Facility and Cash Holdings

 

 ·           On 31 October 2025, the Company was undrawn on its £300.0 million revolving
             credit facility and held cash of £124.6 million (inclusive of interest
             income), reflecting significant prepayments from Euroports, Infinis Energy and
             Salt Creek HoldCo First Lien Facility, totalling £119.6 million. The Company
             also has net undrawn investment commitments of £39.3 million.
 ·           Although the Company has recently de-levered following the high volume of
             repayments, it maintains a robust near-term pipeline of opportunities and
             therefore expects the active redeployment of capital. Further updates will be
             provided as new transactions complete.

Portfolio Composition

 

 ·           The Company's invested portfolio consisted of 49 private debt investments and
             3 infrastructure bonds, diversified across 8 sectors and 28 sub-sectors.

 ·           58.4% of the portfolio is comprised of senior secured loans, reflecting the
             Company's defensive positioning.

 ·           The portfolio pull-to-par, which is incremental to NAV as loans mature over
             time, was 3.0 pence per share as of October, down from 3.1 pence per share
             during September, due to the decline in sovereign yields during the month.

 ·           It had an annualised yield-to-maturity (or yield-to-worst in the case of
             callable bonds) of 9.56% and a cash yield of 7.1% (excluding deposit
             accounts).

 ·           The weighted average loan life is 3.0 years as of October 2025.

 ·           Private debt investments represented 95.0% of the total portfolio, allowing
             the Company to capture illiquidity yield premiums.

 ·           The Company's portfolio remains geographically diversified, with 42.3% located
             across the U.S., 28.0% in the UK and 29.7% in Europe.

 

 

Portfolio Highly Diversified by Sector and Size

 

 

 

 

 

 

 

 

 

 

Share Buybacks

 

 ·           The Company bought back 3,212,607 of its ordinary shares at an average
             purchase price of 77.52 pence per share in October 2025.

 ·           The Company first started buying back shares in July 2022 and has bought back
             233,351,932 ordinary shares as of 31 October 2025, with the buyback continuing
             into November 2025. This share repurchase programme by the Company continues
             to contribute positively to NAV accretion. The Board takes a dynamic approach
             to share buybacks which takes into account available portfolio liquidity, the
             relative discount to NAV and other relevant factors.

 

New Investment Activity During October 2025

 

 ·           Senior loan of €53.8 million to Muehlhan Holding GmbH, as part of a €225
             million bond issuance. The borrower is an established global industrial
             services provider operating across the renewables, infrastructure, marine,
             industry and construction sectors. Core services include onshore and offshore
             wind installation and maintenance, surface protection, scaffolding,
             insulation, welding and electrical works. The YTM on this loan is 7.94%.
 ·           A HoldCo loan of £10.3 million to Project Griffin (with total commitments of
             £23.5 million) to support the construction of a portfolio of seven fully
             permitted UK solar PV projects, with a combined installed capacity of
             approximately 430 MW. The YTM on this loan is 7.93%.
 ·           Senior loan to Project Hero for €6.7 million. The borrower is a Spanish
             market leader in land-based healthcare transport services. The YTM on this
             loan is 6.49%. When swapped into the Fund's base currency, this is equivalent
             to a yield-to-maturity of approximately 8.48%.

 ·           An additional Holdco loan to Sunrun for $1.35 million. The borrower is a
             leader in the U.S. residential solar market. The YTM on this loan is 13.44%.

Investments that Repaid During October 2025

 

 ·           Full repayment for £65.0 million from Infinis Energy, the UK's leading
             generator of low-carbon power from captured methane.

 ·           Full repayment for €50.0 million from Euroports (2nd Lien 2030), a leading
             international ports operator.

 ·           Full repayment for $14.2 million on the Salt Creek Midstream First Lien
             Facility 2021, a midstream oil and gas operator in the U.S.

 ·           Partial sale of Brightline East LLC bonds for $11.2 million. The borrower is a
             privately owned passenger rail project entity in Florida.

 

Non-performing Loans

 

 ·           The Company continues to work towards maximising recovery from the
             non-performing loans in the portfolio (equal to 0.6% of NAV). There are no
             additional announcements of non-performing loans this month.

Top Holdings

 

 

Valuations are independently reviewed each month by PwC.

Full list of SEQI's Portfolio Holdings and SEQI Monthly Factsheet:

http://www.rns-pdf.londonstockexchange.com/rns/6926H_1-2025-11-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6926H_1-2025-11-15.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/6926H_2-2025-11-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6926H_2-2025-11-15.pdf)

 

General Update

 

The Company's Investment Adviser, SIMCo, has set up a wholly-owned subsidiary
in Hong Kong which has made an application to launch a new and separate
infrastructure credit fund in Hong Kong and managed by the subsidiary, subject
to regulatory licensing and authorisation approvals. It is also proposed the
subsidiary managing the new fund (having APAC exposure) will be advised by
SIMCo. This planned expansion into Asia will strengthen SIMCo's global
presence as a specialist in private infrastructure debt.

SEQI's investment allocation policy remains unchanged and can be found on page
2 of the Annual Report: SEQI_Annual_Report_2025_duWdBCBW3Q.pdf
(https://urldefense.com/v3/__https:/wp-seqifund-2025.s3.eu-west-2.amazonaws.com/media/2025/06/SEQI_Annual_Report_2025_duWdBCBW3Q.pdf__;!!Hj9Y_P0nvg!X0KuGFiOmaeMZuaPwMULHaaBxuAz2Nmcu9QhIYBeca8QlLakDCCoJqonqZ-GsWtiSuigNF54zItfHmrLg2zQskGacg$)

 

 

 

About Sequoia Economic Infrastructure Income Fund Limited

 

 ·           SEQI is the UK's largest listed debt investor, 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.
 ·           It seeks to provide investors with regular, sustained, long-term income with
             opportunity for 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 ten years of
             quarterly income, consistently meeting its annual dividend per share target,
             which has grown from 5 pence in 2015 to 6.875 pence per share.
 ·           The fund has a comprehensive sustainability framework, combining
             sustainability goals, a proprietary ESG scoring methodology, alongside
             processes and metrics with alignment to key global initiatives.
 ·           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: seqi.fund/investors/monthly-updates
             (https://www.seqi.fund/investors/monthly-updates/)

 

 

 

For further information please contact:

 

 

 Investment Adviser                                                     +44 (0)20 7079 0480

 Sequoia Investment Management Company Limited                          pm@seqimco.com (mailto:pm@seqimco.com)

 Steve Cook

 Dolf Kohnhorst

 Randall Sandstrom

 Anurag Gupta

 Matt Dimond

 Joint Corporate Brokers and Financial Advisers                         +44 (0)20 7029 8000

 Jefferies International Limited

 Gaudi Le Roux

 Harry Randall

 J.P. Morgan Cazenove (Joint Corporate Broker & Financial Adviser)      +44 (0)20 7742 4000

 Rupert Budge

 William Simmonds

 Public Relations                                                       +44 (0)20 7260 2700

 Teneo (Financial PR)                                                   sequoia@teneo.com (mailto:sequoia@teneo.com)

 Elizabeth Snow

 Colette Cahill

 Alternative Investment Fund Manager (AIFM)                             +44 ( (tel:+44%2020%203530%203626) 0) (tel:+44%2020%203530%203626) 20 3530

                                                                       3600
 FundRock Management Company (Guernsey) Limited

 Ben Snook

+44 ( (tel:+44%2020%203530%203626) 0) (tel:+44%2020%203530%203626) 20 3530
 Chris Hickling                                                         3600

+44 ( (tel:+44%2020%203530%203626) 0) (tel:+44%2020%203530%203626) 20 3530
                                                                        3600

sequoia-aifm@fundrock.com (mailto:sequoia-aifm@fundrock.com)
 Administrator / Company Secretary                                      +44 (0)20 3530 3107

 Apex Fund and Corporate Services (Guernsey) Limited                    Admin.Sequoia@apexgroup.com (mailto:Admin.Sequoia@apexgroup.com)

 +44 ( (tel:+44%2020%203530%203626) 0) (tel:+44%2020%203530%203626) 20 3530
 3600

sequoia-aifm@fundrock.com (mailto:sequoia-aifm@fundrock.com)

 

 

Administrator / Company Secretary

Apex Fund and Corporate Services (Guernsey) Limited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

+44 (0)20 3530 3107

Admin.Sequoia@apexgroup.com (mailto:Admin.Sequoia@apexgroup.com)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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