SEQI fund considers share issue to fund investments

Sequoia Economic Infrastructure Income Fund (SEQI) said it was considering raising fresh equity to take advantage of investment opportunities.

SEQI, which invests in infrastructure debt, said that after using up most of its £150m revolving credit facility it had secured an extra £50m of credit through an "accordion tranche".

At the end of April, SEQI had £113.9m of drawings on its credit facility and cash of £25.5m, resulting in net leverage of £88.4m. It also had undrawn commitments and extra investments in settlement of £84.2m.

The company said its investment adviser saw more opportunities available for investment and that this pipeline was greater than the amount of undrawn leverage available.

"Taking into account these opportunities, the board is pleased to announce that the company is considering a further issue of equity."

A share issue will be at a price that adds to net asset value and will include significant pre-emption rights for existing shareholders, the company said.