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Ericsson Secures EUR500 Million Bank Loan
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Ericsson today announced that it has signed a loan agreement with the European Investment Bank (EIB). The loan amount is EUR 500 million (or the equivalent in USD), and Ericsson has an option for disbursement until April 2014. The loan will mature seven years after disbursement.
The loan supports Ericsson's R&D activities to further develop next generation radio and IP technology and is targeted for development activities at sites in Sweden and Finland.
The loan will extend the debt maturity profile and will further diversify funding sources, without an increase in gross debt.
Johan Wibergh, Head of Business Unit Networks at Ericsson, says: "We are using new smart devices and apps in new ways and need them to function well all the time everywhere. It's changing the way we live and it's placing new requirements on the networks. Our research and development is focused on providing the best performing networks that meet those requirements".
Ericsson invested US$4.9 billion in R&D in 2011, including restructuring charges.
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