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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