Sequoia Economic Infrastructure Fund announced a proposed placing of up to 72.8 million new ordinary shares on Tuesday, with the issue price of the new shares to be announced separately on or around 25 April.
The FTSE 250 firm said the placing would be net asset value accretive to existing shareholders, and accordingly the placing price would be set at a price which would be at a minimum greater than the existing net asset value plus the costs of the Placing.
“Since our launch three years ago, we have seen the company's portfolio grow five-fold as the only listed fund with an exclusive focus on global economic infrastructure debt investments,” said chairman Robert Jennings.
“As a result of our work to date, the company has constructed a cash generative, highly diversified portfolio with an attractive level of dividend and good pipeline of current investment opportunities.”
Jennings said the board believed that now was an opportune time to issue new equity for a fund investing in debt instruments in the infrastructure sector, in particular for its fund, with characteristics of short-life, non-PFI debt, with low reinvestment risk.
“The proposed placing will enhance our ability to capitalise on the increasing demand for infrastructure debt investments and create further value for our shareholders.”