REG - Sequoia Econ Infra - NAV and Investment Update

Sequoia Economic Infrastructure Income FundAnnouncement

16/01/2026 07:02

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RNS Number : 1405P  Sequoia Economic Infra Inc Fd Ld  16 January 2026

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 - December 2025

 

The NAV per share for SEQI, the largest LSE-listed infrastructure debt fund,
increased to 94.55 pence per share from the prior month's NAV per share of
94.04 pence, representing an increase of 0.51 pence per share.

                                        pence per share
 30 November NAV                                  94.04
 Interest income, net of expenses                  0.55
 Asset valuations, net of FX movements            -0.17
 Subscriptions / share buybacks                    0.13
 31 December NAV                                  94.55

 

 

 

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
increased its fixed interest rate composition to 59.1% as of December 2025.

 

Market Summary

 

Relevant Interest Rate Announcements and Inflation Outlook

 

 ·             During December, the Federal Reserve reduced interest rates by 0.25% to 3.75%
               as US inflation showed signs of moderating. The Bank of England also reduced
               rates by 0.25% to 3.75%, as weakening growth and rising unemployment were
               consistent with continued policy easing. During the same period, the European
               Central Bank maintained rates at 2.0% and markets have not priced in any
               additional rate cuts in the Eurozone for the near-term.

 ·             The yield on 10-year US Treasuries and German government bonds both rose by
               approximately 0.15% to 4.7% and 2.9% respectively by December month-end, as
               markets reassessed the pace of further monetary easing. In the UK, 10-year
               Gilts remained broadly flat and ended the month at 4.5%, reflecting slower
               than expected economic growth.

 ·             The Investment Adviser expects inflation to abate further during 2026 across
               all three regions, supported by stabilising energy prices, improved supply
               chains and expectations that trade-related pressures will ease as tariff
               tensions moderate.

 ·             The pace of monetary policy easing is expected to vary by region, with the US
               and UK still expected to progress 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

 

 ·             Market volatility eased as US-China trade relations stabilised, supported by
               the tariff truce agreed at the November 2025 APEC summit. Under the agreement,
               the US committed to reducing tariffs on Chinese imports from 20% to 10%,
               improving investor sentiment and limiting trade-related uncertainty.
               Notwithstanding this, the Investment Adviser is monitoring developments
               closely following recent announcements regarding a potential 25% tariff on
               countries conducting business with Iran, which, if implemented broadly, could
               pose a risk to the durability of the current US-China trade arrangements, with
               any escalation in tariffs likely to add to imported cost pressures and
               reignite inflationary momentum.

 

Portfolio Update

 

Revolving Credit Facility and Cash Holdings

 

 ·             On 31 December 2025, the Company remained undrawn on its £300 million
               revolving credit facility and held cash of £77.0 million (inclusive of
               interest income). The Company also has net undrawn investment commitments of
               £69.0 million, with new investments scheduled to close in the near term.

Portfolio Composition

 

 ·             The Company's invested portfolio consisted of 48 private debt investments and
               2 infrastructure bonds, diversified across 8 sectors and 27 sub-sectors.

 ·             57.9% of the portfolio was 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 December, increasing from 2.8 pence per
               share during November.

 ·             It had an annualised yield-to-maturity (or yield-to-worst in the case of
               callable bonds) of 9.30% and a cash yield of 6.95% (excluding deposit
               accounts).

 ·             The weighted average loan life was 3.0 years as of December 2025.

 ·             Private debt investments which allow the Company to capture illiquidity yield
               premiums, represented 95.3% of the total portfolio.

 ·             The Company's portfolio remained geographically diversified, with 41.0% of
               investments located in the US, 25.9% in the UK and 33.1% in Europe.

 

 

Diversified Portfolio

 

 

Portfolio by Sector

 

 

 

 

 

 

Share Buybacks

 

 ·             The Company bought back 11,158,260 of its ordinary shares at an average
               purchase price of 78.53 pence per share during December 2025.

 ·             The Company first started buying back shares in July 2022 and since then has
               spent £221m buying back 274,671,403 ordinary shares by the end of December
               2025, representing approximately 16% of the shares in issue as at month-end,
               with the buyback continuing into January 2026. This share repurchase programme
               by the Company continues to contribute positively to NAV accretion. The Board
               applies 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 December 2025

 

 ·             Additional senior loan for £19.4 to Community Fibre, a UK-based
               full-fibre-to-the-premises (FTTP) broadband provider. The YTM on this loan is
               8.01%.
 ·             Additional senior loan for €6.7 million to Project Hero, to support a
               Spanish market leader in land-based healthcare transport services. The YTM on
               this loan is 6.68%. When swapped into the Fund's base currency, this is
               equivalent to a YTM of approximately 8.12%.

 ·             Additional HoldCo loan for £2.8 million 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 430 MW. The YTM on this
               loan is 7.97%.

 

Investments that Repaid During December 2025

 

 ·             A senior loan of $36.2 million from Project Ocean II to finance a minority
               stake in a UK-based Floating Liquefied Natural Gas asset repaid in December.

Non-performing Loans

 

 ·             The Company continues to work towards maximising recovery from the
               non-performing loans in the portfolio (amounting to 0.4% of NAV). There are no
               additional material updates on non-performing loans for December 2025.

 

 

Top Holdings

 

 

 

Valuations are independently reviewed each month by PwC.

http://www.rns-pdf.londonstockexchange.com/rns/1405P_1-2026-1-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1405P_1-2026-1-15.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/1405P_2-2026-1-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1405P_2-2026-1-15.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 five 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@simcofunds.com (mailto:pm@simcofunds.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                                  +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)20 3530 36 (tel:+44%2020%203530%203626)

                                                      00
 FundRock Management Company (Guernsey) Limited

 Ben Snook

+44 ( (tel:+44%2020%203530%203626) 0)20 3530 36 (tel:+44%2020%203530%203626)
 Chris Hickling                                        00

+44 ( (tel:+44%2020%203530%203626) 0)20 3530 36 (tel:+44%2020%203530%203626)
                                                       00

sequoia-aifm@fundrock.com (mailto:sequoia-aifm@fundrock.com)
 Administrator / Company Secretary                     +44 (0)20 7592 0419

 Apex Fund and Corporate Services (Guernsey) Limited   admin.sequoia@apexgroup.com (mailto:admin.sequoia@apexgroup.com)

 Aoife Bennett

 +44 ( (tel:+44%2020%203530%203626) 0)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

Aoife Bennett

 

+44 (0)20 7592 0419

admin.sequoia@apexgroup.com (mailto:admin.sequoia@apexgroup.com)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

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