Ericsson (NASDAQ:ERIC) 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 the next generation radio and IP technology that supports mobile broadband build-out globally. The financing 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".
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 32.6 billion in R&D in 2011, including restructuring charges. With this investment Ericsson maintains its position as the key contributor in the development of open telecom standards, with some
30 000 patents held today.
NOTES TO EDITORS
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Ericsson is the world's leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today more than 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscribers.
We operate in 180 countries and employ more than 100,000 people. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2011 the company's net sales were SEK 226.9 billion (USD 35.0 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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