Scandinavian Credit Fund I AB (publ) reports a NAV rate for April of NAV 67.2. That's down by 2,07%.
A new loan of 5 mDKK was paid out to 14 04 2024 A/S (formerly b.energy) under a signed Letter of Intent dated 14 July 2023.
During February, the fund closed the remaining currency hedges. This means that the fund lowers the running costs. Volatility in the fund's NAV will increase somewhat in the future, depending on the development of the Swedish krona. The fund has, in descending order, assets in USD, NOK, EUR, GBP and DKK. During March, the Swedish krona strengthened against all these currencies and the NAV was positively affected by SEK 23m, corresponding to 1,27%. The abolition of the currency hedge has had a positive impact on NAV with SEK 56 million, in addition to eliminated transaction costs. If the currency hedge had remained in place, the liquid funds would have decreased by a corresponding amount.
Cash and cash equivalents decreased from 6.5% of NAV at the end of March to 6.2% as of the end of April.
The fund makes no forecast for future NAV development.
Pledged assets
Blue Energy is being liquidated. The customer base, the brand and the intangible assets were sold during April in a collection transaction. Name change has consequently taken place to 14 04 2024 A/S. Remaining assets are being sold.
The rent levels in the properties in Norrtälje and Hallstavik have been raised. The rental rate has increased in Hallstavik. The fund has also reviewed the ongoing operating costs and succeeded in reducing them. The operating net has thus increased.
Four of the cottages in Björnrike have now been sold, and there will therefore be no need for further lifting to finance the operation. A cabin is fully equipped for rental via Skistar. The fund will evaluate the rental income to assess whether more cabins should be equipped for rental. The sale takes place via Idetfjallby | Mountain cabins in Björnrike/Vemdalen. The rental takes place via MOSIPPEVÄGEN 3A, VFM03A – Björnrike – Vemdalen (skistar.com). Read more at https://idetfjallby.se/
Development of the loan portfolio
The fund has had an external appraiser assess the market value of the undeveloped plots of land in Bergen and Oslo. The provisions for these have therefore increased by SEK 47 million in accordance with the fund's credit policy.
The fund continuously evaluates all legal and contractual possibilities to recover the largest possible part of outstanding loans.
The distribution of the portfolio
The distribution of the portfolio regarding the mortgaged assets looks according to the table below. The rest of the portfolio is loans that have not been mortgaged and are running as before. It is important to point out that the pledged assets consist of companies in category 1-3, i.e. category 1 are companies that pay their interest and amortization according to agreements and here are the largest holdings.
Management strategy
The fund works actively to manage and refine the assets. Hans Westerberg is now chairman of the board of the three shareholdings. What these companies have in common is to lower the cost mass to get a lower break-even level and thus become less sensitive to loss of revenue.
Refund
The fund receives many questions regarding when the next repayment will take place. The fund does not make an assessment when a repayment can take place. The fund will return when repayment becomes relevant.
Repayments are made via Euroclear as repayment of capital. No withholding tax is therefore deducted. Taxation of the shares is done according to current taxation rules, depending on which form of savings was used. The fund cannot answer questions regarding taxation as the fund does not have insight into individual investors' savings, but it is a matter between the investor and its advisors and custodian institutions.
Repayment takes place when the fund has accumulated enough cash for the repayment to be meaningful. This is because the repayments are associated with administrative work and costs.
The record day for repayments will henceforth take place on the same day as the monthly NAV, i.e. the last day of the month and published on the first working day of the month. The refund is made five working days later.
The payment is paid pro rata to the Fund's shareholders. More information and Q&A is available on the Fund's website: https://kreditfonden.se/
