KKV Secured Loan Fund Limited Valuation Update (6532A)

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RNS Number : 6532A

KKV Secured Loan Fund Limited

30 September 2020

30 September 2020

KKV Secured Loan Fund Limited

LEI: 2138007S3YRY3IUU4W39

Valuation Update

The Board of KKV Secured Loan Fund Limited (the "Company") today provides an update in respect of the valuation of the Company's portfolios.

The Company released an announcement on 6 August 2020, in which it stated that KKV Investment Management Limited (the "Portfolio Manager") had identified concerns regarding the valuation of certain assets in the portfolios of the Ordinary and C Share Classes of the Company. At that time, the Company stated that the Portfolio Manager had identified assets representing c.GBP54m* of the NAV of the Ordinary Shares and c.GBP4m* of the NAV of the C Shares that it believed required further review with the assistance of an independent third-party, and that additional assets may also be affected.

The Portfolio Manager has advised the Board that, follow further analysis, it is proposing that assets representing a total of GBP94m* of the NAV of the Ordinary Shares and c.GBP51m* of the NAV of the C Shares be reviewed with the assistance of an independent third-party. This excludes the Company's Anaerobic Digestion assets which are, as previously disclosed, subject to a separate review process for the year-ended 30 June 2020.

The NAV as at 30 June 2020 reflected the Portfolio Manager's initial estimate of impairments and, given the uncertainties, the Board decided to seek additional support for the Portfolio Manager to review specific assets, provide assurance on investment values and confirm the need for any further material impairments. While an independent third-party will be used to assist with the review of these assets, it is not necessarily the case that all such assets will require material impairment. The Portfolio Manager's review will continue to run in parallel and it is likely that assets not part of independent third-party exercise may also require impairment.

*The asset values quoted above are based upon the valuation attributed to such assets in the estimated unaudited NAV as at 30 June 2020, announced on 24 July 2020 (being the last published NAV). As previously stated, such assets are likely to be subject to impairment which will be reflected in the Company's report and accounts for the year-ended 30 June 2020.

The Company has appointed KPMG LLP ("KPMG") to assist the Board with its ongoing review, although additional third-party specialists may be appointed if appropriate. KPMG has commenced its work and will complete this in advance of the publication of the Company's annual report and accounts for the year-ended 30 June 2020, expected to be announced prior to the end of 2020. A further update will be provided as soon as additional material information is available.

At 30 June 2020 there was an amount of GBP2.15m that is due from the Ordinary Share class to the C Share class. It is intended that this amount will be repaid as soon as possible.

This announcement is released by KKV Secured Loan Fund Limited and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information please contact:

 
KKV Investment Management Ltd 
 Catherine Halford Riera 
 Nicola Bird                                       020 7429 2200 
BNP Paribas Securities Services S.C.A., Guernsey 
 Branch 
 Company Secretary                                 01481 750 853 
Winterflood Securities Limited 
 Neil Langford                                     020 3100 0000 
 

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, the person responsible for releasing this announcement is Sharon Williams, Company Secretary.

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September 30, 2020 10:49 ET (14:49 GMT)