REG - Sequoia Econ Infra - NAV and Investment Update

Sequoia Economic Infrastructure Income FundAnnouncement

18/05/2026 07:00

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RNS Number : 5550E  Sequoia Economic Infra Inc Fd Ld  18 May 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 - April 2026

 

The NAV per share for SEQI, the largest LSE listed infrastructure debt fund,
increased to 93.99 pence per share from the prior month's NAV per share of
93.17 pence, representing an increase of 0.82 pence per share. Adjusted for
the accrual of the dividend of 1.71875 pence per share declared in respect of
the quarter ended 31 March 2026 and payable on 22 May 2026, the NAV per share
post-distribution is 92.27 pence per share.

 

                                        pence per share
 31 March NAV                                     93.17
 Interest income, net of expenses                  0.50
 Asset valuations, net of FX movements             0.25
 Subscriptions / share buybacks                    0.07
 30 April NAV (pre-distribution)                  93.99
 Quarterly Dividend                               -1.72
 30 April NAV (post-distribution)                 92.27

 

 

No expected material FX gains or losses are reflected in the NAV 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 - April 2026

 

Dividend yield of 8.70% 1  (#_ftn1) , based on the closing share price of
79.00 pence as at 30 April and the annual dividend target of 6.875 pence per
share.

 

Weighted average portfolio yield-to-maturity was 9.71% as at 30 April,
reflecting the portfolio's strong income returns.

 

Portfolio pull-to-par 2  (#_ftn2) (which is incremental to NAV as loans mature
over time) was 4.4 pence per share as at 30 April.

 

12-month NAV total return was 8.72% as at 30 April.

 

 

 Annualised Total Returns  1Y      3Y     5Y     10Y
 NAV                       8.72%   7.84%  5.62%  8.20%
 Share Price               15.83%  7.85%  1.76%  4.53%

 

 

 

 

Market Summary - April 2026

 

Relevant Interest Rate Announcements, Inflation and Market Outlook

 

 ·             Movements in risk-free rates were mixed across SEQI's investment regions, with
               U.S. 5-year Treasury yields increasing modestly to around 4.0%, U.K. 5-year
               swap rates rising to approximately 4.6%, and 5-year German Bund yields edging
               lower to around 2.8%.

 ·             Central banks in the U.S., U.K. and Eurozone maintained policy rates during
               April. While inflation has continued to moderate in some areas, expectations
               for monetary easing remain uncertain, reflecting ongoing geopolitical
               tensions, the potential for higher energy prices, and persistent inflationary
               pressures across all regions.

 ·             Markets continued to respond to developments in the Middle East following
               month-end, contributing to broader financial market volatility. Risk-free rate
               movements were driven more by evolving inflation expectations and geopolitical
               risk than by changes in monetary policy.

 ·             Against this backdrop, expectations for near-term rate cuts have been delayed,
               particularly in the U.S. and U.K., where higher energy prices and renewed
               inflationary pressures have reduced the likelihood of imminent easing.

 ·             SEQI benefits from its dynamic interest rate positioning, with 59.1% of the
               portfolio held in fixed-rate investments as at the end of April 2026.

 ·             The outlook for inflation, interest rates and broader financial markets
               remains closely linked to geopolitical developments. Prolonged instability,
               particularly if reflected in energy prices, could keep yields elevated and
               delay rate cuts, while de-escalation would likely support lower yields,
               improved market sentiment and a clearer path towards monetary easing.

 

Tariff Impact & Geopolitical Analysis

 

 ·             Geopolitical uncertainty remained elevated during April, notwithstanding the
               temporary U.S.-Iran ceasefire announced early in the month. While this
               initially eased pressure on oil prices, the fragility of the agreement,
               proposed U.S. tariffs on countries trading with Iran and continued Middle East
               tensions reinforced inflation risks and market volatility.

 ·             The direct impact on SEQI's portfolio remains limited, given its low
               short-term sensitivity to rising energy prices. The Investment Adviser
               continues to monitor potential secondary impact effects on borrowers.

 ·             SEQI's defensive positioning is supported by its high allocation to senior
               loans, representing 63.2% of the portfolio, alongside 52.4% exposure to
               defensive sectors including Digitalisation, Accommodation, Utilities and
               Renewables.

 ·             Market dislocation and potential credit spread widening may create selective
               opportunities to originate new loans at attractive risk-adjusted returns,
               subject to the prevailing macroeconomic and geopolitical backdrop.

 

Portfolio Update - 30 April 2026

 

 

Revolving Credit Facility and Cash Holdings

 

 ·             As at 30 April, the Company was net undrawn on its £300 million revolving
               credit facility and held cash of £56.0 million, inclusive of interest income.
               The Company also had net undrawn investment commitments of £138.2 million,
               with approximately £87.4 million of net deployments into new loans during
               May.

 

New Investment Activity - April 2026

 

 ·             Shortly after month-end, SEQI deployed $60.0 million towards a new 2nd lien
               financing of a U.S.-based mobile power generation platform. More information
               on this loan will be disclosed in the RNS NAV Announcement for May 2026.
 ·             During April 2026, Active Care Group ("ACG"), a U.K. national provider of
               accommodation and complex care services, drew £2.4 million, being the
               remaining portion of the £7.4 million top-up funding granted in February
               2026.

Investments Maturing or Sold During April 2026

 ·             The Company sold its entire position in SL 4000 Connecticut LLC at a small
               premium to book value.

Portfolio Composition

 

 ·             The Company's invested portfolio consisted of 45 private debt investments and
               2 infrastructure bonds, diversified across 8 sectors and 25 sub-sectors.

 ·             The weighted average loan life was 3.2 years.

 ·             Private debt investments which allow the Company to capture illiquidity yield
               premiums, represented 94.0% of the total portfolio.

 ·             The Company's portfolio remained geographically diversified, with 42.1% of
               investments located in the U.S, 23.6% in the U.K. and 34.3% in Europe.

 

 

Non-performing Loans - April 2026

 

 ·             The Company continues to work towards maximising recovery from the remaining
               non-performing loan in the portfolio (amounting to 0.3% of NAV).

 

 

Diversified Portfolio

 

 

 

Portfolio by Sector

 

 

 

 

Share Buybacks - April 2026

 

 ·             The Company bought back 9,214,110 of its ordinary shares at an average
               purchase price of 79.79 pence per share during April 2026.

 ·             The Company first started buying back shares in July 2022 and since then has
               spent £239.6 million buying back 297,721,193 ordinary shares by the end of
               April 2026, representing approximately 19% of the shares in issue as at
               month-end.

 ·             This share buyback programme by the Company continues to contribute positively
               to NAV accretion, generating 2.57 pence per share since the start of the
               programme in July 2022.

 ·             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. The share buyback programme will continue to remain in
               place.

 

Top Holdings - April 2026

 

 

Valuations are independently reviewed each month by PwC.

 

http://www.rns-pdf.londonstockexchange.com/rns/5550E_1-2026-5-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5550E_1-2026-5-15.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/5550E_2-2026-5-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5550E_2-2026-5-15.pdf)
 

 

About Sequoia Economic Infrastructure Income Fund Limited

 

 ·             SEQI is the U.K.'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.
 ·             SEQI's loans are high quality and have robust covenants. SEQI lends to
               companies that have a track record of consistent cash flow generation and
               which are backed by physical assets. This enables SEQI to benefit from
               exposure to an asset class with robust fundamentals as well as the opportunity
               for attractive returns.
 ·             SEQI seeks to provide investors with regular, sustained, long-term income with
               opportunity to benefit from 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 11 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 Company 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 ( (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 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) (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

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.

 1  (#_ftnref1) The dividend yield is calculated by dividing the annual
dividend target by the relevant share price.

 2  (#_ftnref2) The pull-to-par includes the mark-to-market of the Fund's
interest rate swaps, capturing the valuation impact of hedging floating rate
assets into fixed rate exposure.

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