Subjects: CON, FNC
Ericsson signs funding agreements with the European Investment Bank
- Ericsson has signed two 7-year funding agreements with the European Investment Bank (EIB) for a total of EUR 420 million
- The loans will finance parts of Ericsson's R&D investments in wireless technology up to 2025
- The R&D investments are an important contributor into Ericsson's overall plan to reach the Net Zero target by 2040 through reduced energy consumption in the mobile networks globally
STOCKHOLM, Jan. 26, 2024 /PRNewswire/ -- Ericsson (NASDAQ: ERIC) is announcing that it has signed two agreements for funding with the European Investment Bank (EIB) for a total of EUR 420 million whereof EUR 250 million was disbursed in December 2023.
In addition to strengthening Ericsson's balance sheet and financial flexibility, the loans have been granted for the purpose of financing Ericsson's investments in research and development (R&D) in relation to enhanced wireless technology between 2023 and 2025. The R&D investments are an important contributor into Ericsson's overall plan to reach the Net Zero target by 2040 through reduced energy consumption in the mobile networks globally.
Carl Mellander, Ericsson's CFO, says: "Wireless technology will play a key role in transitioning towards a low-carbon economy. The signing of the funding agreements with the European Investment Bank provides Ericsson with increased flexibility to drive critical research and development into making our own products more competitive and energy efficient. This will benefit our operator customers as well as other industrial sectors in their efforts to create a positive impact."
The loans form an important part of Ericsson's overall funding strategy, complementing other sources.
In December 2023, Ericsson signed a 7-year EUR 100 million green funding agreement with the Nordic Investment Bank (NIB). The loan will finance R&D investments in wireless technology.
On November 23, 2023, Ericsson announced the successful placement of a green Euro-denominated 500 million 4.5-year bond. The bond was issued within Ericsson's Green Financing Framework, under the Company's Euro Medium Term Note Program (EMTN).
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Ericsson enables communications service providers and enterprises to capture the full value of connectivity. The company's portfolio spans the following business areas: Networks, Cloud Software and Services, Enterprise Wireless Solutions, Global Communications Platform, and Technologies and New Businesses. It is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's innovation investments have delivered the benefits of mobility and mobile broadband to billions of people globally. Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
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