Investment Companies Daily PAC Combination with ATR, SEQI/WWH final results

Research evidence excerpt

Investment Companies Daily PAC Combination with ATR, SEQI/WWH final results

on equity valued at nil, £35.8m of subordinated debt

and £62.0m of senior debt. Over the past two years, £38.5m has been invested in

improving ACG, which represents a combination of SEQI’s investment, third-party debt

funding and internally generated funds.

• Potential investment policy changes: SEQI's investment remit has remained

unchanged since its IPO in March 2015 and is currently limited to the US and Canada,

the UK and certain other European countries, Australia and New Zealand. SEQI says that,

whilst the target jurisdictions selected 11 years ago were appropriate, given the scale of

opportunities then available and the limited private infrastructure debt market

development elsewhere, it thinks that approach is no longer optimal. SEQI says that other

markets have now reached a sufficient state of maturity and its investment adviser has

identified potential opportunities, often via existing sponsor relationships, in certain

non‑eligible jurisdictions, which SEQI is currently unable to take advantage of. SEQI

intends to undertake a consultation exercise with shareholders to discuss extending its

investment policy to include a wider range of carefully selected jurisdictions, with a view

to proposing this at the upcoming AGM if thought appropriate.

• Discount, RCF and capital allocation: During the year to 31/3/26, SEQI bought back

75.3m shares spending £59.5m implying an average price of 79.0pps. Some £422m was

invested in new loans, including some commitments made that were not yet drawn at the

financial year end. SEQI says the loan investments were financed by natural loan

recycling from maturing investments and SEQI remains undrawn on its £300m capacity

credit facility.