TEAF Provides Unaudited Balance Sheet Information and Asset Coverage Ratio Updates as of December 29, 2023

Rhea-AI Summary

Ecofin Sustainable and Social Impact Term Fund (TEAF) provides unaudited balance sheet information and asset coverage ratio update. As of December 29, 2023, the company's unaudited total assets were approximately $231.0 million and its unaudited net asset value was $202.5 million, or $15.01 per share. The asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 879%. The fund has 113.49 million common shares outstanding and provides updates on direct investments on its website.

Insights

Financial Analyst

The disclosed unaudited balance sheet information and asset coverage ratio for Ecofin Sustainable and Social Impact Term Fund (TEAF) present a snapshot of the fund's financial health as of December 29, 2023. The asset coverage ratio, standing at 879%, significantly exceeds the minimum requirement of 300% for closed-end funds under the Investment Company Act of 1940. This high ratio indicates a strong cushion against potential losses for senior security holders and suggests a conservative leverage strategy by the fund's management.

Moreover, the net asset value (NAV) per share at $15.01 provides investors with a key indicator of the fund's performance, especially when compared to the market price of the shares. A discrepancy between NAV and market price can offer arbitrage opportunities or may reflect market sentiment about the fund's direction. The per-share investment value at $17.00 also suggests that the fund's portfolio is predominantly investment-driven, which is vital for long-term value growth.

Market Research Analyst

TEAF's focus on sustainable and social impact investments aligns with a growing trend in the investment community towards Environmental, Social and Governance (ESG) criteria. This approach can attract a particular investor demographic interested in aligning their investments with their values. The fund's strategy to target 60% direct investments could further enhance its appeal by offering a differentiated portfolio that may not be easily replicated by exchange-traded funds (ETFs) or other investment vehicles.

The transparency in providing monthly updates on direct investments and deal summaries is a positive move for investor relations, fostering trust and providing clarity on investment strategies and outcomes. This could potentially result in a more engaged and loyal investor base.

Legal Expert

The 'Safe harbor' statement included in the press release is a regulatory requirement designed to protect the fund from legal liability in the event of forward-looking statements that may not materialize. This statement is particularly relevant for investors, as it underscores the inherent uncertainties associated with investment predictions and the fund's future performance.

It is also important to note that the compliance with the 1940 Act regarding asset coverage for senior securities indicates that the fund adheres to strict regulatory standards, which can instill investor confidence in the fund's management and operational integrity.

OVERLAND PARK, KS / ASCCESSWIRE / January 2, 2024 / The following unaudited balance sheet information and asset coverage ratio update is provided for Ecofin Sustainable and Social Impact Term Fund (NYSE:TEAF).

As of December 29, 2023, the company's unaudited total assets were approximately $231.0 million and its unaudited net asset value was $202.5 million, or $15.01 per share.

As of December 29, 2023, the company's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 879%. For more information on the company's coverage ratios, please refer to the leverage summary web page at https://cef.ecofininvest.com.

Set forth below is a summary of the company's unaudited balance sheet at December 29, 2023.

Unaudited balance sheet

	(in Millions)	Per Share
Investments	$ 229.3	$ 17.00
Cash and Cash Equivalents	0.1	0.01
Other Assets	1.6	0.12
Total Assets	231.0	17.13
Credit Facility Borrowings	26.0	1.93
Payable for Investments Purchased	1.5	0.11
Other Liabilities	1.0	0.08
Net Assets	$ 202.5	$ 15.01

13.49 million common shares outstanding.

The top 10 holdings for TEAF as of the most recent month-end can be found on the fund's portfolio web page at cef.ecofininvest.com/funds/teaf.

TEAF also provides update on direct investments.

TEAF provides an update on the fund's direct investments on the company website at https://cef.ecofininvest.com/funds/teaf/#portfolio. Details on each private deal that has taken place over the prior month will be published on the website at https://cef.ecofininvest.com/funds/teaf/#deal-summaries-list. The list includes all deals completed since the fund's inception. Updates will continue to be posted on a monthly basis if there was a deal during the prior month until the fund reaches its target of 60% direct investments.

TCA Advisors is the adviser to Ecofin Sustainable and Social Impact Term Fund and Ecofin Advisors Limited is the fund's sub-adviser.

Safe harbor statement

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the fund and TCA believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund's reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the fund and TCA do not assume a duty to update this forward-looking statement.

Contact Information

For additional information on this fund, please visit cef.ecofininvest.comor contact Eva Lipner at (913) 981-1020 or info@tortoiseecofin.com.

SOURCE: Ecofin

View the original press release on accesswire.com

FAQ

What is the unaudited net asset value of Ecofin Sustainable and Social Impact Term Fund (TEAF) as of December 29, 2023?

The unaudited net asset value of TEAF as of December 29, 2023, was $202.5 million, or $15.01 per share.

What is the asset coverage ratio of Ecofin Sustainable and Social Impact Term Fund (TEAF) under the 1940 Act with respect to senior securities representing indebtedness?

The asset coverage ratio of TEAF under the 1940 Act with respect to senior securities representing indebtedness was 879% as of December 29, 2023.

How many common shares does Ecofin Sustainable and Social Impact Term Fund (TEAF) have outstanding?

TEAF has 113.49 million common shares outstanding.

Where can I find the top 10 holdings for TEAF?

The top 10 holdings for TEAF can be found on the fund's portfolio web page at cef.ecofininvest.com/funds/teaf.

Where can I find updates on TEAF's direct investments?

Updates on TEAF's direct investments can be found on the company website at https://cef.ecofininvest.com/funds/teaf/#portfolio.

Who is the adviser to Ecofin Sustainable and Social Impact Term Fund (TEAF)?

TCA Advisors is the adviser to TEAF.