Fund manager Sequoia has raised £175 million ($252 million; €223 million) for its Economic Infrastructure Income Fund through a C share placement on the London Stock Exchange.
The issue, which was originally targeting £150 million with a £200 million ceiling, saw a total of just over 175 million C shares sold. The latter do not carry any voting rights, save in limited circumstances. Stifel Nicolaus Europe acted as sponsor and sole bookrunner on the issue.
The fundraise caps off a good week for listed infrastructure funds, with 3i Infrastructure also announcing this week that it managed to raise £385 million in a significantly oversubscribed issue, which was originally targeting £350 million. A 3i spokesman called it “the largest fundraise in the UK listed infrastructure space since 3i Infrastructure’s IPO in 2007”.
The Sequoia Economic Infrastructure Fund focuses mainly on subordinated infrastructure debt, although it can take select senior debt positions. In a May note, Sequoia said its portfolio consisted of 17 infrastructure bonds and 19 private debt investments with a total value of £287 million.
The portfolio is generating an annualised yield-to-maturity of 8.1 percent and a weighted average life of some 5.9 years. About 53 percent of it comprises floating rate debt, which should benefit the fund once interest rates rise. Investments are spread across the UK, Western Europe, Australia, Canada and the US in sectors including road, rail, utilities, power, renewables, shipping and aircraft leasing.
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