QuotedData’s morning briefing 3 March 2021

Sequoia Economic Infrastructure-SEQI

In QuotedData’s morning briefing 3 March 2021 –

  • Sequoia Economic Infrastructure Income (SEQI), the specialist investor in economic infrastructure debt, raised £110m in a placing. A total of 104,513,064 new ordinary shares will be issued at a price of 105.25 pence per share. Steve Cook, head of portfolio management at Sequoia Investment Management Company (SEQI’s manager), said: “We have closely monitored the investment portfolio since the COVID-19 pandemic induced a sharp downturn in markets generally last year and have been pleased with both the underlying performance of the economic infrastructure projects and with the material improvement in NAV. We believe the portfolio is well-positioned for a potentially higher interest rate investment environment with 60 per cent. of the company’s loans being floating rate linked and very few long-dated fixed-rate loans, which could allow the company to secure higher returns in the long term.”
  • Gore Street Energy Storage (GSF) announced that it is now participating in the National Grid’s new dynamic containment service and will have most of its operational portfolio participating from 1 April 2021. The announcement noted the following: “Since October 2020, dynamic containment has paid an average of £17.0 MW/hr, well above the recent average fast frequency response prices, of £6.5 MW/hr over the same period. If this pricing trend continues, this new service could provide Gore Street with a significant uplift in revenue across over 90MW of operational assets in GB. This new revenue stream operates alongside fast frequency revenue streams and the company believes that current dynamic containment prices may result in a material uplift in the company’s revenue for the current calendar year.”
  • Hipgnosis (SONG) announced the appointment of Richard Rowe as executive vice president, with immediate effect. Rowe began his career at CBS Records in 1979 as a lawyer in its Business Affairs Department before eventually becoming the President of Sony Music Publishing from 1991 to 2005 (renamed Sony ATV Music Publishing in 1995). Whilst there, Rowe made the deal with Michael Jackson that led to Sony ATV Music Publishing’s acquisition of The Beatles’ catalogue. He also made the acquisition of Acuff-Rose Music which included the catalogues of Roy Orbison and The Everly Brothers.
  • DP Aircraft 1 has announced that its leases with Thai Airways are likely to move to a ‘power by the hour’ arrangement, under which Thai will only pay for the aircraft as it uses them. Given the bad news about the company’s Norwegian leases, it now says that it does not intend to pay dividends for the foreseeable future.

We also have a battery storage investment by JLEN Environmental Assets and annual results from Premier Miton Global Renewables

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