- Ericsson has signed two seven-year funding agreements with the EIB for a total of €420 million.
- The loans will fund parts of Ericsson’s RDI investments in wireless technology and energy efficiency between 2023 and 2025.
- They will help Ericsson reach its net-zero target by 2040, by reducing energy consumption in mobile networks globally.
The European Investment Bank (EIB) and Ericsson (NASDAQ: ERIC) have signed two funding agreements for a total of €420 million, with the first tranche worth €250 million disbursed in December 2023. In addition to strengthening Ericsson’s balance sheet and financial flexibility, the loans will support its research, development and innovation (RDI) investments to develop enhanced wireless technology between 2023 and 2025, and to increase network energy efficiency. The RDI investments are a key step on Ericsson’s path to reaching its 2040 net-zero target through reduced energy consumption in mobile networks.
“When it comes to developing 5G technology, Ericsson is a catalyser of technological progress and has long been at the forefront with its research, development and innovation. The EIB is proud to continue supporting Ericsson’s ambitions to remain a global leader in developing the future of mobile telecom technologies, ensuring European independence in critical strategic communications,” said EIB Vice-President Thomas Östros.
Ericsson CFO Carl Mellander remarked, “Wireless technology will play a key role in transitioning towards a low-carbon economy. The signing of the funding agreement with the European Investment Bank provides Ericsson with increased flexibility to drive critical research and development into making our own products more competitive and energy efficient. This will benefit our operator customers as well as other industrial sectors in their efforts to create a positive impact.”
The loans form an important part of Ericsson’s overall funding strategy, complementing other sources.
Background information
Ericsson is a leading telecommunications equipment and services provider headquartered in Stockholm, Sweden. The company has more than 60,000 patents and employs around 105,000 people in over 180 countries.
In December 2023, Ericsson signed a 7-year EUR 100 million green funding agreement with the Nordic Investment Bank (NIB). The loan will finance R&D investments in wireless technology. On November 23, 2023, Ericsson announced the successful placement of a green Euro-denominated 500 million 4.5-year bond. The bond was issued within Ericsson’s Green Financing Framework, under the Company’s Euro Medium Term Note Program (EMTN).