TEAF Provides Unaudited Balance Sheet Information and Asset Coverage Ratio Updates as of March 28, 2024

Rhea-AI Summary

Ecofin Sustainable and Social Impact Term Fund (TEAF) releases unaudited balance sheet information showing total assets of $225.2 million and net asset value of $199.9 million as of March 28, 2024, with an asset coverage ratio of 923% for senior securities. The fund also updates on direct investments and provides details on its top 10 holdings.

Financial Analyst

The reported asset coverage ratio of 923% for Ecofin Sustainable and Social Impact Term Fund (TEAF) is significantly higher than the minimum 300% required for investment companies by the 1940 Act. This suggests a strong protective cushion for creditors and implies a conservative leverage strategy. Such a high ratio may also indicate that TEAF is not aggressively utilizing debt, which could be seen as a missed opportunity to enhance returns through leverage. Investors might weigh the potential for lower risk against the possibility of lower returns compared to more leveraged peers.

Moreover, the disclosure of net asset value (NAV) per share provides an immediate sense of the fund's performance. The NAV is a critical figure for investors as it represents the value of their shares in the fund. A stable or increasing NAV per share is typically a positive indicator, while a declining NAV can be a sign of concern. In this case, an analysis of the historical NAV trend would be necessary to assess the fund's performance trajectory.

Market Research Analyst

TEAF's emphasis on sustainable and social impact investments aligns with a growing trend in the investment community towards Environmental, Social and Governance (ESG) criteria. Investors are increasingly considering the social and environmental impact of their investments, alongside financial returns. TEAF's strategy could attract investors who are looking to align their portfolios with their values. However, the fund's performance must be evaluated against comparable ESG funds to determine its competitive position in the market.

The fund's commitment to reach a target of 60% in direct investments is an interesting strategy that may offer higher control and potentially higher returns on these investments. However, it also carries higher risks and requires thorough due diligence. Investors should monitor the fund's progress towards this target and the performance of these direct investments over time.

OVERLAND PARK, KS / ACCESSWIRE / April 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 March 28, 2024, the company's unaudited total assets were approximately $225.2 million and its unaudited net asset value was $199.9 million, or $14.82 per share.

As of March 28, 2024, the company's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 923%. 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 March 28, 2024.

Unaudited balance sheet

		(in Millions)				Per Share
Investments		$	222.7			$	16.51
Cash and Cash Equivalents			0.4				0.03
Other Assets			2.1				0.16
Total Assets			225.2				16.70
Credit Facility Borrowings			24.3				1.80
Other Liabilities			1.0				0.08
Net Assets		$	199.9			$	14.82

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

What were Ecofin Sustainable and Social Impact Term Fund's total assets and net asset value as of March 28, 2024?

As of March 28, 2024, TEAF's total assets were approximately $225.2 million, and its net asset value was $199.9 million.

What is the asset coverage ratio for senior securities representing indebtedness for TEAF as of March 28, 2024?

TEAF's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 923% as of March 28, 2024.

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 get updates on Ecofin Sustainable and Social Impact Term Fund'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?

TCA Advisors is the adviser to Ecofin Sustainable and Social Impact Term Fund.