Sequoia Clean Energy – Series 1

Sequoia Clean Energy – Series 1
Providing international exposure to companies that produce clean energy and provide clean energy technology

As governments around the world are accelerating the transition to a LOW-CARBON economy and mitigating climate change risk, clean energy investment is becoming a greater focus for global Investors. The Sequoia Clean Energy – Series 1 Investment aims to provide an opportunity for Investors to participate in this transition by offer 100% leveraged exposure for a 2 year period to the S&P Global Clean Energy 3.5% Decrement Index (“Reference Asset/Index”) which aims to track companies that produce energy from solar, wind, hydro and other renewable sources, as well as companies that build and provide clean technology.

Clean Energy Sources Included in the Index

The Units are designed to give investors exposure to any positive growth of the Index over a 2 year Investment Term through the payment of an uncapped Performance Coupon at Maturity.

Any Performance Coupon at Maturity is calculated by reference to the performance of the Index during the Investment Term, adjusted for changes in the AUD/USD exchange rate during the Investment Term.

S&P Global Clean Energy 3.5% Decrement Index

The S&P Global Clean Energy 3.5% Decrement Index seeks to measure the performance of the S&P Global Clean Energy Index, less a fixed fee of 3.5% p.a. The S&P Global Clean Energy Index itself is designed to measure the performance of companies in global clean energy-related businesses from both developed and emerging markets, with a target constituent count of 100. As at the date of this PDS, the total number of shares included within the Index was 81.

Top 10 Constituents By Index Weight:

Constituent
  • Vestas Wind Systems AS
  • Orsted
  • Enphase Energy Inc
  • NextEra Energy Inc
  • Xcel Energy Inc
  • SolarEdge Technologies Inc
  • Iberdrola SA
  • Enel SpA
  • Plug Power Inc
  • Scottish & Southern Energy
Symbol
  • VWS
  • ORSTED
  • ENPH
  • NEE
  • XEL
  • SEDG
  • IBE
  • ENEL
  • PLUG
  • SSE
Sector*
  • Industrials
  • Utilities
  • Information Technology
  • Utilities
  • Utilities
  • Information Technology
  • Utilities
  • Utilities
  • Industrials
  • Utilities

Summary of the key features

Features
  • Reference Asset/Index
  • Potential Performance Coupon
  • Performance Cap
  • Currency Exposure
  • Limited recourse Loan
  • Investment Term
  • Annual Interest Rate on Loan
  • Application Fee
  • Total Investment Cost
  • Margin Calls
  • SMSF Eligibility
  • Commencement Date/Issue Date
  • Maturity Date
Sequoia Clean Energy Series 1
  • S&P Global Clean Energy 3.5% Decrement Index
  • Yes, there is potential for an uncapped Performance Coupon payable at Maturity based on the Index Performance, adjusted for changes in the AUD/USD exchange rate
  • No, there is no limit on the maximum potential Performance Coupon that can be paid at Maturity
  • Yes, the potential Performance Coupon is adjusted for changes in the AUD/USD exchange rate during the Investment Term
  • Yes, Investors borrow 100% of the Investment Amount
  • 2 years
  • 6.65% p.a.
  • 1.65% including GST
  • 14.95% (payable upfront)
  • No
  • Yes
  • 24 September 2021 or as soon as reasonably practicable thereafter as determined by the Issuer and as notified to you.
  • 25 September 2023

Downloads

To find out more, and to download a copy of the Term sheet PDS and Master PDS, please click on the links below

Sequoia Clean Energy Series 1 Performance

DateStrategy ValueIndicative Unit value*Performance
29-Oct-2021997.29$1.22913.56%
30-Nov-2021948.46$1.1778.00%
31-Dec-2021851.48$1.098-3.05%

*This represents an indicative level for unwinding your investment on the reporting date and is an indication of the market value of the investment.

Key risks include:

  • Your return (including any Performance Coupon) is affected by the performance of the Index. There is no guarantee that the Index will perform well.
  • There will be no Performance Coupon payable if the performance of the Index is negative at Maturity and Investors will suffer a 100% loss.
  • There is no guarantee that the Units will generate returns in excess of the Prepaid Interest and Fees, during the Investment Term. Additionally, in the event of an Investor requested Issuer Buy-Back or Early Maturity Event, you will not receive a refund of your Prepaid Interest or Fees.
  • Gains (and losses) may be magnified using a 100% Loan. However, note that the Loan is a limited recourse Loan, so you can never lose more than your Prepaid Interest Amount and Fees paid at Commencement.
  • Investors are subject to counterparty credit risk with respect to the Issuer and the Hedge Counterparty; and
  • The Units may mature early following an Early Maturity Event, including an Adjustment Event, Market Disruption Event or if the Issuer accepts your request for an Issuer Buy-Back.
  • Please refer to Section 2 “Risks” of the Master PDS for more information.

For more information, please contact Sequoia at:
invest@sequoia.com.au and 02 8114 2222.

 

Units in Sequoia Clean Energy – Series 1 are issued by Sequoia Specialist Investments Pty Ltd (ACN 145 459 936 ) (the “Issuer”) and arranged by Sequoia Asset Management Pty Ltd (ACN 135 907 550, AFSL 341506) (the “Arranger”). Investments in the Sequoia Clean Energy – Series 1 can only be made by completing an Application Form attached to the Term Sheet PDS, after reading the Term Sheet PDS dated 8 September 2021 and the Master PDS dated 14 August 2017 and submitting it to Sequoia a copy of the PDS can be obtained by contacting Sequoia Asset Management on or contacting your financial adviser. You should consider the Term Sheet & Master PDS’ before deciding whether to invest in Units in Sequoia Clean Energy – Series 1.  Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS.