First Step in Green Financing

Stockholm (HedgeNordic) – Stockholm-based direct lending fund Scandinavian Credit Fund is making its foray into green financing after signing a direct loan with Danish real estate developer Birch Ejendomme. The loan constitutes project financing for the construction of energy-friendly residential rental properties in Jutland in Denmark and matures in four years.

Commenting on the deal, Peder Broms (pictured), Head of Origination at Scandinavian Credit Fund (SCF), says that “we are very pleased to be able to participate in the financing of numerous real estate projects in regions with good growth prospects.” Most properties included in the transaction had been sold even before receiving funding from SCF, which minimizes the risks associated with the loan.

Before 2017, Birch Ejendomme mostly developed residential rental properties in Jutland for their own book, but the company has sold about 20 projects to institutional investors such as Niam, PFA, Koncenton and Crescendo since then. The ongoing project financed by Scandinavian Credit Fund includes properties that are more environmentally friendly. The direct lending fund had SEK 4.1 billion in loans outstanding at the end of November.

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About Author

Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index (NHX), as well as being a novice columnist covering the Nordic hedge fund industry for HedgeNordic. Prior to joining HedgeNordic, Eugeniu had served as a columnist for a U.S. journal covering insider trading activity, activist campaigns and hedge fund moves. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018.

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