Scandinavian Credit Fund I AB (publ) reports a NAV rate for March of NAV 68.62. It is down by 5.63%. No new lending took place either to external borrowers or to the majority-owned companies during March.
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, EUR, NOK, GPD and DKK. During March, the Swedish krona weakened against all these currencies and the NAV was positively affected by SEK 22 million, corresponding to 1,19%. Cash and cash equivalents increased from 6.0% of NAV at the end of February to 6.5% at the end of March. The fund makes no forecast for future NAV development.
Pledged assets
The three majority-owned companies managed without liquidity additions during March. 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
Unfortunately, some of the fund's borrowers have not paid their interest as agreed. The provisions have therefore increased by SEK 130 million in accordance with IFRS9 and the fund's credit policy. The fund assesses that a borrower lacks the ability to fulfill his obligations. The fund has therefore started a mortgage realization process. The deposits consist of undeveloped plots of land in Bergen and Oslo.
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.
The settlement date for repayments will in future take place on the same day as the monthly NAV, i.e. the last day of the month and published on the first banking 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/
