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Sequoia Economic enters £325 million sustainability-linked revolver
By Marisa Wong
Los Angeles, Nov. 15 – Sequoia Economic Infrastructures Income Fund Ltd. announced it refinanced and increased its existing multicurrency revolving credit facility of £280 million that was set to mature on Dec. 7, 2021.
The new £325 million multicurrency sustainability-linked revolver is provided by Royal Bank of Scotland International Ltd. as mandated lead arranger, bookrunner and documentation coordinator and ING Bank as mandated lead arranger and sustainability coordinator. Macquarie and Raiffeisen Bank International AG are also arrangers.
The facility has a three-year tenor and benefits from a £75 million accordion.
The refinance revolver has a lower borrowing cost of 200 basis points over Sonia, compared to 210 bps over Libor on the prior facility.
An arrangement fee is payable upfront in addition to a commitment fee on the undrawn portion of the new revolver on equivalent terms to the previous facility.
Under the facility’s sustainability feature, the margin premium or discount is linked to the ESG score of Sequoia’s investment portfolio as verified by an independent assurance process.
The revolver and accordion provide the company with additional liquidity that will be used for working capital purposes and to fund investments.
The revolver imposes an interest cover test and a loan-to-value test on the company and is secured by a charge over the company’s bank accounts, a charge over the shares in subsidiary Sequoia IDF Asset Holdings SA and a charge on the subsidiary’s assets.
In accordance with the company’s investment policy, any borrowings undertaken by the company will not exceed 20% of the value of the assets of the company less its liabilities.
Sequoia is a Guernsey-based investment fund focused on transport, transportation equipment, utilities, power, renewable energy and telecommunications infrastructure.
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