TEAF Provides Unaudited Balance Sheet Information and Asset Coverage Ratio Updates as of July 31, 2024

Rhea-AI Summary

Ecofin Sustainable and Social Impact Term Fund (NYSE:TEAF) has released its unaudited balance sheet information and asset coverage ratio updates as of July 31, 2024. The fund's unaudited total assets were approximately $221.0 million, with a net asset value of $200.8 million, or $14.89 per share. The company's asset coverage ratio under the 1940 Act for senior securities representing indebtedness was 1,120%.

Key balance sheet figures include $219.3 million in investments, $0.3 million in cash and cash equivalents, and $19.7 million in credit facility borrowings. The fund has 13.49 million common shares outstanding. TEAF also provides updates on its direct investments and portfolio holdings on its website.

Positive

• Net asset value of $200.8 million, or $14.89 per share
• Strong asset coverage ratio of 1,120% under the 1940 Act
• Substantial investment portfolio valued at $219.3 million

Negative

• Credit facility borrowings of $19.7 million

Financial Analyst

As a seasoned financial analyst, I find TEAF's latest unaudited balance sheet information and asset coverage ratio update to be moderately impactful for investors. Here are the key takeaways:

• TEAF's unaudited total assets stand at approximately $221.0 million, with a net asset value of $200.8 million, or $14.89 per share.
• The fund's asset coverage ratio under the 1940 Act for senior securities representing indebtedness is an impressive 1,120%, indicating a strong financial position and low leverage risk.
• The fund's investments, valued at $219.3 million, represent the bulk of its assets, showcasing a focused investment strategy.

While these figures demonstrate stability, it's important to note that this is unaudited information. Investors should await the audited financial statements for a more definitive picture. The fund's strategy of targeting 60% direct investments is intriguing, potentially offering unique opportunities but also carrying inherent risks associated with less liquid investments. Overall, TEAF appears to be in a solid financial position, but as always, investors should consider their risk tolerance and investment goals when evaluating this fund.

Market Research Analyst

From a market research perspective, TEAF's latest update provides some interesting insights into the fund's positioning and strategy. The fund's focus on sustainable and social impact investments aligns with growing market trends towards ESG (Environmental, Social and Governance) investing. This could potentially attract socially conscious investors and institutions looking to diversify their portfolios with impact investments.

The fund's commitment to transparency, evidenced by its monthly updates on direct investments and deal summaries, is commendable and likely to be appreciated by investors. This level of disclosure is not common among all funds and could be a differentiating factor for TEAF in the competitive landscape of closed-end funds.

However, it's important to note that the fund's strategy of targeting 60% direct investments may introduce liquidity risks and valuation challenges. While this approach could potentially yield higher returns, it also exposes the fund to greater volatility and risk, especially in times of market stress. Investors should carefully consider these factors and how they align with their investment objectives and risk tolerance.

Overall, TEAF's positioning in the sustainable and social impact space, combined with its transparency initiatives, could appeal to a growing segment of the market. However, the unique risks associated with its investment strategy should not be overlooked.

OVERLAND PARK, KS / ACCESSWIRE / August 1, 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 July 31, 2024, the company's unaudited total assets were approximately $221.0 million and its unaudited net asset value was $200.8 million, or $14.89 per share.

As of July 31, 2024, the company's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 1,120%. 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 July 31, 2024.

Unaudited balance sheet

		(in Millions)				Per Share
Investments		$	219.3			$	16.25
Cash and Cash Equivalents			0.3				0.02
Other Assets			1.4				0.11
Total Assets			221.0				16.38
Credit Facility Borrowings			19.7				1.46
Other Liabilities			0.5				0.03
Net Assets		$	200.8			$	14.89

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.com or contact Eva Lipner at (913) 981-1020 or info@ecofininvest.com.

SOURCE: Ecofin

View the original press release on accesswire.com

FAQ

What was TEAF's net asset value per share as of July 31, 2024?

TEAF's net asset value per share was $14.89 as of July 31, 2024.

How much were TEAF's total assets and investments worth on July 31, 2024?

TEAF's unaudited total assets were approximately $221.0 million, with investments valued at $219.3 million as of July 31, 2024.

What was TEAF's asset coverage ratio for senior securities as of July 31, 2024?

TEAF's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 1,120% as of July 31, 2024.

How many common shares of TEAF were outstanding on July 31, 2024?

TEAF had 13.49 million common shares outstanding as of July 31, 2024.