- EUR 50 million EIB loan will be used to expand capacity of Finnish 4G network and start deployment of 5G. First EIB loan for the deployment of a 5G network.
- Option for further EUR 40 million to be drawn by DNA, for total credit of EUR 90 million.
DNA has signed a EUR 50 million finance agreement with the European Investment Bank (EIB), with the intent to subsequently extend this by a further EUR 40 million, for a total credit of EUR 90 million.
DNA will use the loans to further expand capacity and implement a technological upgrade of its 4G mobile network in Finland, towards the initial deployment of 5G, to cope with the rapid growth of data traffic. This is the EIB’s first project that finances a 5G roll-out, after the recent RDI investments with Nokia and Ericsson. DNA’s 5G service provision will begin in 2019. During the first phase, DNA will offer high-quality 5G private and corporate broadband connections.
“We are happy about our long-term cooperation with EIB. DNA has been preparing its mobile network for the 5G era since 2016 and this is a concrete step to make it reality for our customers starting next year, says DNA’s CEO Jukka Leinonen.”
“This further investment shows not only that Finland is a frontrunner when it comes to telecom technology, but also that the EU Bank takes its mission to support European innovation very seriously” added EIB Vice-President Ambroise Fayolle. “The business case for enabling 5G has already been made, but it will still take significant investment to make it a reality for consumers. Furthermore, 5G will be crucial to grow the network’s capacity in a more sustainable way, thanks to its superior energy efficiency performance.”
DNA has been systematically developing its mobile network towards 5G. The network has been equipped with 5G-capable technology and network capacity has been increased to meet the demands of 5G. The introduction of 5G technology will begin when the 5G license comes into force, and its broad-ranging introduction will begin when 5G-capable devices become available.
The loans, which supplement DNA’s debt maturity profile, will have average maturities of approximately 7 years after disbursement, which can take place at any time during the next 18 months.