REG - Sequoia Econ Infra - NAV and Investment Update
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RNS Number : 4002L Sequoia Economic Infra Inc Fd Ld 15 December 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 - November 2025
The NAV per share for SEQI, the largest LSE-listed infrastructure debt fund,
increased to 94.04 pence per share from the prior month's NAV per share of
93.18 pence, representing an increase of 0.86 pence per share.
pence per share
31 October NAV 93.18
Interest income, net of expenses 0.48
Asset valuations, net of FX movements* 0.09
Subscriptions / share buybacks 0.29
30 November NAV 94.04
No expected material FX gains or losses as the portfolio is approximately 100%
currency-hedged. However, the Company'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.
Well positioned to benefit from current high interest rates. The portfolio has
a fixed interest rate composition of 58.3% as of November 2025.
Market Summary
Relevant Interest Rate Announcements and Inflation
· The yield on 10-year US Treasuries was broadly stable at 4.1% at the end of
November, although it did exhibit periods of volatility during the month. The
Federal Reserve's policy rate remained unchanged at 3.75% during the same
period. On 10 December (after month-end), the Federal Reserve cut interest
rates by an additional 0.25% to 3.50%.
· The Bank of England held the base rate at 4.0% during November. Ahead of the
Autumn Budget, 10-year Gilt yields experienced some volatility, briefly
reaching 4.7%. Following the announcement, yields eased and ended the month at
4.4%, reflecting no movement on a month-on-month basis and a relatively muted
market reaction by November month-end.
· Since September 2025, the yield on 10-year Gilts has decreased by 0.2% more
than on equivalent rates on debt in the US and Eurozone. The Bank of England
is also considered highly likely to cut interest rates from 4.0% to 3.75% on
18 December 2025.
· During November, the 10-year yield on German Bunds rose by approximately
0.25%, reaching 2.8% by month-end. The European Central Bank has kept its
policy rate unchanged at 2.0% since the September meeting. Eurozone inflation
remains mixed, with German and Spanish CPI higher than expected in November.
While the European Central Bank has signalled limited inclination to adjust
rates, German inflation at 2.6% suggests that the risk of a potential rate
hike persists.
· The pace of policy easing is expected to vary across regions, with the US and
UK likely to move ahead of the Eurozone. As interest rates decline,
alternative assets such as infrastructure are expected to become increasingly
attractive relative to traditional liquid debt.
Tariff Impact & Geopolitical Analysis
· During November, US-China trade relations remained broadly stable following
the one-year truce agreed at the APEC 2025 summit, under which Washington
committed to reducing its tariffs on Chinese imports from 20% to 10%.
· The US and EU continue to operate under the broader Agreement on Reciprocal,
Fair, and Balanced Trade (August 2025 framework). It sets ceilings on US
tariffs on E.U. goods (e.g. 15%) and commits the EU to eliminate or reduce
certain tariffs on US industrial exports.
· Following the US Senate's late-October vote to rescind the broad
"national-emergency" tariff authority under the International Emergency
Economic Powers Act (IEEPA), legislative scrutiny of expansive tariff powers
has intensified. This development may lower the probability of large-scale new
tariffs being imposed on EU or UK goods in the near term.
Portfolio Update
Revolving Credit Facility and Cash Holdings
· On 30 November 2025, the Company was undrawn on its £300.0 million revolving
credit facility and held cash of £72.5 million (inclusive of interest
income). The Company also has net undrawn investment commitments of £83.8
million, reflecting an active pipeline of investments in the near term.
Portfolio Composition
· The Company's invested portfolio consisted of 49 private debt investments and
2 infrastructure bonds, diversified across 8 sectors and 27 sub-sectors.
· 56.4% 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 2.8 pence per share as of November, down from 3.0 pence per share
during October.
· It had an annualised yield-to-maturity (or yield-to-worst in the case of
callable bonds) of 9.29% and a cash yield of 7.01% (excluding deposit
accounts).
· The weighted average loan life was 3.0 years as of November 2025.
· Private debt investments represented 95.4% of the total portfolio, allowing
the Company to capture illiquidity yield premiums.
· The Company's portfolio remains geographically diversified, with 41.8% located
across the US, 25.9% in the UK and 32.3% in Europe.
Diversified Portfolio
Share Buybacks
· The Company bought back 30,161,211 of its ordinary shares at an average
purchase price of 78.86 pence per share in November 2025.
· The Company first started buying back shares in July 2022 and has bought back
263,513,143 ordinary shares as of 30 November 2025, with the buyback
continuing into December 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 November 2025
· Senior loan into Euroports 1(st) Lien 2032 for €35.0 million to participate
in the refinancing of the previous loan, Euroports 2(nd) Lien 2030. The
borrower is a leading international ports operator. The yield-to-maturity
(YTM) on the loan is 6.56%. When swapped into the Fund's based currency, this
is equivalent to a YTM of approximately 8.63%.
· Additional senior loan into 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 6.54%. When swapped into the Fund's base currency, this is
equivalent to a YTM of approximately 8.61%.
· Additional senior loan into Sunrun Radcliffe HoldCo for $6.35 million. The
borrower is a leader in the US residential solar market. The YTM on the loan
is 13.10%.
Investments that Repaid or Were Sold During November 2025
· Full repayment of £24.1 million (inclusive of all accrued interest) from Bulb
Energy, a former UK energy supplier. This is a very good outcome for the Fund,
given the insolvency of the borrower in November 2021.
· Full sale of SEQI's remaining Brightline East LLC bonds for $5.0 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 0.5% of NAV). There are no
additional material updates on non-performing loans for November 2025.
Top Holdings
Valuations are independently reviewed each month by PwC.
http://www.rns-pdf.londonstockexchange.com/rns/4002L_1-2025-12-12.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4002L_1-2025-12-12.pdf)
http://www.rns-pdf.londonstockexchange.com/rns/4002L_2-2025-12-12.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4002L_2-2025-12-12.pdf)
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)
Rob Yates
Colette Cahill
Alternative Investment Fund Manager (AIFM) +44 ( (tel:+44%2020%203530%203626) 0) (tel:+44%2020%203530%203626) 20 3530
36 (tel:+44%2020%203530%203626) 00
FundRock Management Company (Guernsey) Limited
Ben Snook
+44 ( (tel:+44%2020%203530%203626) 0) (tel:+44%2020%203530%203626) 20 3530
Chris Hickling 36 (tel:+44%2020%203530%203626) 00
+44 ( (tel:+44%2020%203530%203626) 0) (tel:+44%2020%203530%203626) 20 3530
36 (tel:+44%2020%203530%203626) 00
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
36 (tel:+44%2020%203530%203626) 00
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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referred to herein have not been and will not be registered under the U.S.
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