-- Part of the new funds, 98 million will replace a credit with NIB that was set to mature in 2021
-- The agreement will support investments in research and development of 5G technology
STOCKHOLM, Dec. 20, 2019 /PRNewswire/KOREA IT TIMES -- 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
