Scandinavian Credit Fund I AB (publ) reports a NAV price for December of 60.73. During December, 85 MSEK was repaid, corresponding to approximately 5% of the capital as communicated in November. In total, assets decreased by approximately -4.0% since the previous month. Adjusted for the payment, the return during the month amounted to +0.96%. The fund's managed capital amounted to 1,641 MSEK at the end of the month.
A total of four loans have been fully or partially repaid since the previous month, further strengthening the cash position. For more information, see below.
The Swedish krona weakened against the dollar during November but strengthened against other currencies in the portfolio. In total, currency fluctuations affected NAV by approximately 0.3% of the total return during the month.
Currency | 2024-12-31 | 2024-11-30 | % change |
DKK/SEK | 1,5368 | 1,5452 | -0,54% |
EUR/SEK | 11,4608 | 11,5254 | -0,56% |
GBP/SEK | 13,8519 | 13,88 | -0,20% |
NOK/SEK | 0,9719 | 0,987 | -1,53% |
USD/SEK | 11,0643 | 10,8908 | 1,59% |
*) As mentioned in previous monthly newsletters, the fund has stopped hedging its holdings as it was considered too expensive and that it also has liquidity effects in connection with the realization of the currency futures. The outcome of the portfolio is affected after we stopped hedging both up and down depending on how the currencies change.
Loans and shares in the portfolio before reserves are distributed in underlying currencies as below.


According to the model that the fund applies for loan provisions, the provision per category is as follows. The holdings realized in December have resulted in the acquisition value being written off and the provision for the holdings being dissolved. Total provisions per category are shown below.

The total provision has decreased during November and December in connection with the repayments made from borrowers. The remaining reserve amounts to -468.8 million SEK as of December 31, compared to the previous year's reserve of -447.7 million SEK.
Events during the month
During December, two smaller loans were repaid, totaling 13 million sek, as well as a slightly larger credit that the fund had with a listed IT company, totaling 53 million sek. We have worked intensively with these credits and have managed to have the loans repaid without credit losses. Another loan was amortized during December with just over 50 million sek, which was mentioned in the previous monthly letter.
The sale of the condominiums that have been developed in Vemdalen is ongoing. The agent has had some viewings and some offers have also been received. We hope to be able to conclude some sales during January. Advertisements are available on Hemnet and the agent's website. We will now also advertise in the magazine Åka Skidor, both online and in the issue that will be published in early February. The advertisements on Hemnet, see below.
The Riksbank continues to lower the key interest rate, which was lowered by -0.25% in December. In total, the interest rate has thus been lowered by -1.5”% in 2024 and is now down to 2.5%. The next interest rate announcement will come on January 29, 2025. Further reductions may come in 2025, but the assessments of where the interest rate level will bottom out vary between the major banks' chief strategists. The more favorable interest rate situation will hopefully lead to increased interest in the developed tenant-owned apartments and the property market in general.
In addition to the condominiums in Vemdalen, as previously reported, the fund has properties in Norrtälje and Hallstavik. We have worked here to bring in new tenants and improve the operating net. In the monthly newsletter for September, we were pleased to report that we have brought in Kronans Apotek as a new tenant in one of the properties. Adaptation of the premises is now underway so that occupancy can take place during Q1 2025. With a slightly more favorable location, we are now hiring brokers for the sale of one of the properties.
The positive trend that we have seen in some of the unlisted companies that the fund has realised as collateral is continuing. Sales and results will exceed previous years. The collaboration with the management, which is partly new to one of the companies, is working well. During December, one of the holdings paid interest amounting to NOK 5 million, which contributed to the month's return as the interest has not previously been accrued since the loan has been included in category 2. We assess that the company will be able to pay interest going forward and will thus be moved back to category 1. The fund has not changed the valuation of the holdings as a result of the improvement in results as we need a more long-term view of the development to make any adjustments. However, for future divestments, it is positive that the companies are developing well. We will need to continue working with the companies for some time to come before the sale can be carried out.
Repayment of capital
The fund will make a new repayment of capital during the coming quarter. We will return with information in future monthly letters.
We have received questions about how the repayment made in December should be treated for tax purposes. Repayment of capital made after the fund was closed should be seen as an amortization of the outstanding capital share loan. The repayment does not entail any withdrawal of shares, but the number of shares will remain the same. The value of the shares decreases in line with the repayments made. Capital gain or loss will only arise on the day the shares are withdrawn and is then equal to the cash paid out minus the acquisition value less the amortizations received.
In our assignment to Euroclear, we have instructed that no withholding tax should be deducted on the payment made.
More information and Q&A is available on the Fund's website: https://kreditfonden.se as well as in previous monthly newsletters.