REG - Sequoia Econ Infra - Suspension of Scrip Dividend Alternative

Sequoia Economic Infrastructure Income FundAnnouncement

06/05/2022 17:00

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RNS Number : 6757K  Sequoia Economic Infra Inc Fd Ld  06 May 2022

6 May 2022

 

Sequoia Economic Infrastructure Income Fund Limited

(the "Company")

 

Suspension of Scrip Dividend Alternative

Update on Investment Adviser Shares

On 21 April 2022, the Board of Directors of the Company declared that an
interim dividend of 1.5625p per share would be payable to holders of Ordinary
Shares in respect of the three-month period ended 31 March 2022 (the "Q4
Dividend"). The Q4 Dividend had an ex-dividend date of 28 April 2022 and a
Record Date of 29 April 2022. As part of the Q4 Dividend, the Board of
Directors had the intention of offering a Scrip Dividend Alternative at a
Scrip Share Reference Price to be announced on 6 May 2022.

 

The Scrip Share Reference Price for the Q4 Dividend has been calculated as
97.6p, being the average of the middle market prices of the Company's Ordinary
Shares for the ex-dividend date and the four subsequent dealing days. The
Scrip Share Reference Price is below the Company's NAV per share of 98.9p
being the last announced NAV of 100.5p as at 31 March 2022 adjusted for the
shares trading ex-dividend with effect from 28 April 2022. Accordingly, the
Board has exercised its discretion to suspend the decision to offer Scrip
Shares for the time being and will instead offer the Full Cash Dividend in
respect of the Q4 Dividend and future quarters. All shareholders will
therefore be paid the Q4 Dividend in cash at an earlier payment date of 27 May
2022 and, should they so wish, can choose to apply the cash dividend in
acquiring Ordinary Shares in the secondary market. The revised timetable in
respect of the Q4 dividend is set out below:

 

Ex-Dividend date:                 28 April 2022

Record Date:                        29 April 2022

Payment Date:                     27 May 2022

 

The Board will keep under consideration the re-instatement of the Scrip
Dividend Alternative in respect of future quarterly dividends, subject to an
assessment of the relevant prices and costs and determination that doing so
would be accretive to the Company's NAV for the benefit of shareholders as a
whole.

 

Further information on the Company's scrip dividend scheme can be found in the
scrip dividend circular (the "Scrip Circular") which is available on the
Company's website to view and/or download at http://www.seqifund.com
(http://www.seqifund.com) . The Scrip Circular is also available on the
National Storage Mechanism website at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . Copies of the Scrip
Offer Circular are also available for inspection at Sarnia House, Le Truchot,
St Peter Port, Guernsey.

 

Terms used and not defined in this announcement shall have the meanings given
to them in the Scrip Circular.

 

Update on Investment Adviser Shares

 

The Company further announces that in consideration of the suspension of the
Scrip Dividend Alternative, and in accordance with the terms of the Investment
Advisory Agreement between the Company and Sequoia Investment Management
Company Limited (the "Investment Adviser"), the Board has considered the issue
of shares to the Investment Adviser for the relevant portion of the fees
payable to the Investment Adviser for the three month period ended 31 March
2022. As the closing price for the Company's ordinary shares on 5 May 2022
(being the last trading day prior to the Board considering the issue of shares
to the Investment Adviser) was at a discount to the last published NAV per
share, the relevant portion of the fees payable to the Investment Adviser for
the three month period ended 31 March 2022 which would otherwise have been
issued as shares, will instead be paid by the Company to the Investment
Adviser in cash in the amount of £296,185.79. The Investment Adviser has
committed to issue an irrevocable instruction upon receipt of the funds to
utilise such cash to acquire ordinary shares of the Company in the market
without delay, and such shares will be subject to a three-year rolling lock-up
in accordance with the terms of the Investment Advisory Agreement. A further
announcement will be released in the coming days once the shares have been
acquired by the Investment Adviser.

 

For further information please contact:

 

 Sequoia Investment Management Company                                       +44 (0) 20 7079 0480

 Steve Cook

 Dolf Kohnhorst

 Randall Sandstrom

 Greg Taylor

 Anurag Gupta

 Jefferies International Limited (Corporate Broker & Financial Adviser)      +44 (0) 20 7029 8000

 Neil Winward

 Gaudi Le Roux

 Tulchan Communications (Financial PR)                                       +44 (0) 20 7353 4200

 Martin Pengelley

 Elizabeth Snow

 Deborah Roney

 Sanne Fund Services (Guernsey) Limited (Company Secretary)                  +44 (0) 1481 755530

 Matt Falla

 Katrina Rowe

 

About Sequoia Economic Infrastructure Income Fund Limited

 

The Company is a Guernsey registered closed-ended investment company that
seeks to provide investors with regular, sustained, long-term distributions
and capital appreciation from a diversified portfolio of senior and
subordinated economic infrastructure debt investments. The Company is advised
by Sequoia Investment Management Company Limited.

 

LEI: 2138006OW12FQHJ6PX91

 

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