By Dominic Chopping
STOCKHOLM--Sweden's Investor AB (INVE-B.SK) said Thursday that 3
Scandinavia has repaid its bank loan maturing in July 2015 through
a SEK7.5 billion equity injection, of which SEK3 billion (40%) was
paid by Investor and SEK4.5 billion (60%) from Hutchison Whampoa
(0013.HK).
3 Scandinavia retains the SEK1.8 billion loan, maturing in 2019,
provided by the European Investment Bank (EIB) and guaranteed
pro-rata by Investor and Hutchison Whampoa.
3 Scandinavia's current borrowing cost exceeds Investor's direct
borrowing cost, despite the guarantee. By borrowing directly,
Investor can provide funding to 3 Scandinavia at a lower total
cost, while Investor's overall leverage is not impacted.
Following the refinancing, Investor's guarantee of 40% of 3
Scandinavia's debt has decreased from SEK3.7 billion to SEK0.7
billion, now only related to the EIB loan.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@WSJNordics
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