(Alliance News) – Sequoia Economic Infrastructure Income Fund Ltd said on Monday its net asset value fell 1.6% to 92.14 pence per share on October 31, from 93.64 pence on September 30.
The investment fund specializing in economic infrastructure debt highlighted the impact of increases in risk-free rates and credit spreads on the decline in its NAV in recent months.
Sequoia Economic reported cash of £79m as of October 31 and said it had drawn £189.6m on its £325m revolving credit facility, while its undrawn commitments on existing investments were valued at £77.2million.
At the end of October, the company’s portfolio consisted of 63 private debt investments and 6 infrastructure bonds in 8 sectors and 27 sub-sectors. It had an annualized yield to maturity of 11.12%.
Sequoia Economic noted that its investment adviser said its dividend coverage should improve for its 2023 fiscal year as its floating rate investments continue to benefit from rising short-term interest rates.
The company’s financial year ends on March 31.
The share of Sequoia Economic Infrastructure Income Fund rose 0.5% to 92.33 pence on Monday afternoon in London.
By Greg Rosenvinge; [email protected]
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