Ericsson today announced that it 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."
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 30 000 patents held today.
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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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