Ericsson (NASDAQ:ERIC) is announcing that it has signed agreements for credit facilities with the Nordic Investment Bank (NIB) for USD 220 million, maturing in 2023, and AB Svensk Exportkredit (SEK) for USD 150 million, maturing in 2025. Of these new funds, 98 million will replace credit with NIB that was set to mature in 2019.
- Ericsson will raise USD 220 million from the Nordic Investment Bank and USD 150 million from AB Svensk Exportkredit
- The credit agreements will mature in 2023 and 2025 and will extend Ericsson’s debt maturity profile
- In line with Ericsson’s focused business strategy, these agreements will support R&D activities to further develop 5G and other innovative mobile technologies
In addition to strengthening Ericsson’s balance sheet and financial flexibility, these new funds support R&D activities to further develop 5G and other mobile innovations. Mobile networks are evolving to deliver superior mobile broadband and communication services with increased data rates, improved coverage, availability and quality that will open-up for new services and business opportunities.
Erik Ekudden, Ericsson Chief Technology Officer, says: “As part of our focused strategy we are increasing our investments to secure technology leadership in 5G, IoT and digital services. Already now we have 38 operators engaged with us on developing and preparing for 5G networks. This is more than any other company. In the coming years, we will see 5G networks going live around the world, with major deployments from 2020 and we believe that there will be one billion 5G subscriptions by the end of 2023. The technologies that we are investing in are fundamentally changing the way we innovate, collaborate, produce, live and do business.”
Key for success in the telecom industry is the delivery of future-proof, high-quality networks and solutions. To build on its technology leadership, Ericsson invested SEK 31.6 billion in R&D in 2016. Ericsson is the key contributor in the development of open telecom standards, with some 42,000 patents held by end of 2016.