Ericsson (NASDAQ: ERIC) is announcing that it has signed an agreement for credit facility with the Nordic Investment Bank (NIB) for USD 150 million, maturing in 2025. Of these new funds, 98 million will replace credit with NIB that was set to mature in 2021.
In addition to strengthening Ericsson's balance sheet and financial flexibility, the loan has been granted for the purpose of financing Ericsson to support investments in research and development (R&D) in relation to the development of 5G technology during the years 2020-2022.
Erik Ekudden, Ericsson Chief Technology Officer, says: Our increased investments to secure technology leadership in 5G, IoT and digital services have enabled us to reach nearly 80 commercial 5G agreements and contracts with unique operators, 24 of which are live networks - 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 expect the global number of 5G subscriptions to top 2.6 billion in 2025. The technologies that we are investing in are fundamentally changing the way we innovate, collaborate, 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 38 billion in R&D in 2018. This has enabled the company to be the leading contributor in the development of open telecom standards, with some 49,000 patents.
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About Ericsson
Ericsson enables communications service providers to capture the full value of connectivity. The company's portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's investments in innovation have delivered the benefits of telephony and mobile broadband to billions of people around the world. The Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
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Ericsson (NASDAQ: ERIC) is announcing that it has signed an agreement for credit facility with the Nordic Investment Bank (NIB) for USD 150 million, maturing in 2025. Of these new funds, 98 million will replace credit with NIB that was set to mature in 2021.
