(Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd on Monday said its net asset value fell by 1.6% to 92.14 pence per share at October 31, from 93.64p at September 30.

The investment fund specialising in economic infrastructure debt highlighted the impact of increases in risk-free rates and credit spreads on its NAV decline over recent months.

Sequoia Economic reported cash of GBP79 million at October 31 and said it had drawn GBP189.6 million on its GBP325 million revolving credit facility, while its undrawn commitments on existing investments were valued at GBP77.2 million.

The firm's portfolio consisted of 63 private debt investments and 6 infrastructure bonds across 8 sectors and 27 sub-sectors at the end of October. It had an annualised yield-to-maturity of 11.12%.

Sequoia Economic noted that its investment adviser said its dividend cover is expected to improve for its 2023 financial year as its floating rate investments continue to benefit from increasing short term interest rates.

The firm's financial year ends March 31.

Share in Sequoia Economic Infrastructure Income Fund were up 0.5% at 92.33 pence on Monday afternoon in London.

By Greg Rosenvinge; gregrosenvinge@alliancenews.com

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