Scandinavian Credit Fund I AB (publ) reports a NAV rate for October of 75.25. That's down 3.78 %. The decline is attributable to a write-down of a credit of approximately SEK 80m. This is because a borrower has been moved from category 1 to category 2. The borrower was moved to category 2 due to non-payment of interest. It is not a realized loss but follows the IFRS9 model that the fund uses. The fund has an ongoing dialogue with the borrower.
The fund has not had any new lending during October, however, a lift of SEK 0.1 million has been carried out to Idet Fjällby to finance the divestment, which has now begun. A number of measures have been taken to improve the return on cash and cash equivalents. During October, no divestment took place.
Pledged assetsAll companies where the fund is the majority owner (Blue, Global Scanning and Scooper) had positive cash flows during October. We work closely with the company management to develop the companies in terms of revenue with a focus on cash flow generation.
Global Scanning has a world market share of approximately 70% in industrial scanners. They recently launched a world-unique contactless scanner. The customer group is primarily art museums, which are a completely new customer group that is independent of economic conditions.
The fund also owns properties in Kopparberg, Norrtälje and Björnrike, Idetfjallby | Mountain cabins in Björnrike/Vemdalen. In parallel with the upgrading of the properties, we are working on selling them off.
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.
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.
The fund receives many questions regarding when the next payment will take place. As previously communicated, it will happen in Q1 2024 at the earliest and the fund will return when it becomes relevant.
Payments 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 advisers and custodian institutions.
Payment is made when the fund has accumulated enough cash for the payment to be meaningful. This is because the payments are associated with administrative work and costs.
The settlement date for payments 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 working day of the month. The payment is made five working days later.
The payment is paid pro rata to the Fund's shareholders. More information about the payment is communicated on the Fund's website: https://kreditfonden.se/