REG - Sequoia Econ Infra - NAV and Investment Update

Sequoia Economic Infrastructure Income FundAnnouncement

16/02/2026 07:00

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RNS Number : 0332T  Sequoia Economic Infra Inc Fd Ld  16 February 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 - January 2026

 

The NAV per share for SEQI, the largest LSE listed infrastructure debt fund,
increased to 94.77 pence per share from the prior month's NAV per share of
94.55 pence, representing an increase of 0.22 pence per share. Adjusted for
the accrual of the dividend of 1.71875 pence per share declared in respect of
the quarter ended 31 December 2025 and payable on 27 February 2026, the NAV
per share post-distribution is 93.05 pence per share.

 

                                          pence per share
 31 December 2025 NAV                               94.55
 Interest income, net of expenses                    0.54
 Asset valuations, net of FX movements              -0.34
 Subscriptions / share buybacks                      0.02
 31 January 2026 NAV (pre-distribution)             94.77
 Dividend                                           -1.72
 31 January 2026 NAV (post-distribution)            93.05

 

 

 

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.

 

Key Performance Highlights - January 2026

 

Dividend yield of 8.64%, based on the closing share price of 79.60 pence and
the annual dividend target of 6.875 pence per share.

 

Weighted average portfolio yield-to-maturity of 9.24%, reflecting the
portfolio's strong income returns.

 

Share price total return of 9.85% over the last twelve months, based on share
price appreciation and total dividends paid.

 

The portfolio pull-to-par (which is incremental to NAV as loans mature over
time) is 3.3 pence per share.

 

 

Market Summary - January 2026

 

Relevant Interest Rate Announcements and Inflation Outlook

 

 ·           During January 2026, the Federal Reserve held its policy rate at 3.75%, while
             the yield on 10-year US Treasuries rose by approximately 0.1% to 4.3%,
             reflecting a market reassessment of the timing and pace of future rate cuts.
             Data released shortly after month-end indicated continued resilience in the US
             labour market, with January 2026 job creation exceeding expectations.

 ·           In the UK, the Bank of England maintained base rates at 3.75%, following
             inflation data that came in above expectations at 3.4%. Economic activity was
             weaker than anticipated, with GDP expanding by 0.1% in January 2026. Ten-year
             Gilt yields were volatile during the month, declining by around 0.15% before
             ending January at 4.6%, an increase of 0.1% from the previous month.
 ·           In the Eurozone, the European Central Bank also kept policy rates unchanged at
             2.0%. Ten-year German Bund yields remained broadly stable at 2.9% by January
             2026 month-end. Eurozone inflation continued its gradual decline, falling to
             1.7% during the same period, below the ECB's 2.0% target.

 ·           While policy rates remain elevated, SEQI continues to benefit from its
             flexible rate risk positioning, with 58.2% of the portfolio comprised of
             fixed-rate investments as at January 2026.

 ·           The Investment Adviser expects inflationary pressures to abate during 2026,
             supported by moderating energy prices, ongoing supply-chain normalisation and
             weaker demand conditions. However, the outlook remains subject to increased
             risk of geopolitical developments and renewed trade-related frictions.

 ·           Looking ahead, the timing and pace of monetary policy easing is expected to
             diverge across regions, with policy rates in the Eurozone appearing nearer to
             the end of the easing cycle, while the US and UK may apply further reductions.
             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 conditions remained relatively stable as US-China trade relations
             continued to benefit from the tariff truce agreed at the November 2025 APEC
             summit, including the reduction of US tariffs on Chinese imports from 20% to
             10%. However, sentiment was tempered by the formal implementation in January
             2026 of a 25% US tariff on countries trading with Iran, heightening broader
             geopolitical and trade risks. Any further escalation could undermine existing
             trade arrangements, increase imported cost pressures and revive inflationary
             concerns.

Portfolio Update - January 2026

 

Revolving Credit Facility and Cash Holdings

 

 ·           On 31 January 2026, the Company remained undrawn on its £300 million
             revolving credit facility and held cash of £69.4 million (inclusive of
             interest income). The Company also had net undrawn investment commitments of
             £93.7 million, with approximately £60 million of this on new transactions
             which it closed during February 2026, after January 2026 month-end.

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.

 ·           58.3% of the portfolio was comprised of senior secured loans, reflecting the
             Company's defensive positioning.

 ·           The weighted average loan life was 3.0 years as of January 2026.

 ·           Private debt investments which allow the Company to capture illiquidity yield
             premiums, represented 94.8% of the total portfolio.

 ·           The Company's portfolio remained geographically diversified, with 40.7% of
             investments located in the US, 32.5% in Europe and 26.8% in the UK.

 ·           The Investment Adviser observes the recent sell-off in various software
             sectors, particularly in the U.S, and notes that the portfolio is not exposed
             to any material contagion risk.

 

Diversified Portfolio

 

 

Portfolio by Sector

 

 

 

Share Buybacks - January 2026

 

 ·           The Company bought back 2,299,553 of its ordinary shares at an average
             purchase price of 79.25 pence per share during January 2026.

 ·           The Company first started buying back shares in July 2022 and since then has
             spent £223.1 million buying back 276,970,956 ordinary shares by the end of
             January 2026, representing approximately 17% of the shares in issue as at
             month-end, with the buyback continuing into February 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 - January 2026

 

 ·           Additional senior loan for £6.8 million to OCU Group (formerly known as
             Project Octopus in the loan book). The borrower is a leading UK infrastructure
             engineering services provider. The YTM on this loan is 8.76%.
 ·           An additional Holdco loan to Sunrun for $4.3 million. The borrower is a leader
             in the U.S. residential solar market. The YTM on this loan is 12.78%.

 ·           Investment pipeline remains strong with new transactions also successfully
             closing in February 2026, after January 2026 month-end

 

No investments repaid during January 2026.

 

Non-performing Loans - January 2026

 

 ·           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 January 2026.

Top Holdings - January 2026

 

 

 

Valuations are independently reviewed each month by PwC.

http://www.rns-pdf.londonstockexchange.com/rns/0332T_1-2026-2-13.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0332T_1-2026-2-13.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/0332T_2-2026-2-13.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0332T_2-2026-2-13.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

 Jessica Pine

 Alternative Investment Fund Manager (AIFM)            +44 (0)20 7353 3600

 FundRock Management Company (Guernsey) Limited        sequoia-aifm@fundrock.com (mailto:sequoia-aifm@fundrock.com)

 Ben Snook

 Chris Hickling

 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

 

 

 

 

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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