Ericsson Signs Loan Agreement with the Nordic Investment Bank
Published on: 24th Jul 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
Ericsson has signed a loan agreement with the Nordic Investment Bank (NIB). The loan amounts to EUR 150 million (or the equivalent in USD) and is divided into two equal tranches with respective seven and nine year maturity. The loan will be disbursed during 2012.
The loan supports Ericsson's R&D activities to develop the next generation radio and IP technology supporting Mobile Broadband build-out globally. The financing is targeting development activities at sites in Sweden and Finland.
The loan will refinance part of debt maturing in 2012-2014, extend the debt maturity profile and will further diversify funding sources.
Johan Wibergh, Head of Business Unit Networks at Ericsson, says: "The pace of change in the telecom industry has increased dramatically in recent years. We have gone from voice only to data communication, TDM (Time Division Multiplexing) to IP (Internet Protocol), circuit switched to packet switched voice and the transition from 2G to 3G now also includes capability to handle 4G technology. To keep up with the increased complexity we need to maintain a high level of R&D investment. With support from the Nordic Investment Bank, we will be able to further our technology leadership in radio and IP."