Monday, January 8, 2018

Ericsson borrows $370M to fund 5G R&D and strengthen balance sheet

In late December, Ericsson signed a credit agreement with the Nordic Investment Bank (NIB) for US$220 million, maturing in 2023, and with AB Svensk Exportkredit (SEK) for US$150 million, maturing in 2025. Of these new funds, $98 million will replace credit with NIB that was set to mature in 2019. Ericsson said the remaining amount will be used to strengthen its balance sheet and to support R&D activities to further develop 5G and other mobile innovations.

Ericsson invested SEK 31.6 billion in R&D in 2016 (US$3.9 billion).

"As part of our focused strategy, we are increasing our investments to secure technology leadership in 5G, IoT and digital services. Already now we have 38 operators engaged with us on developing and preparing for 5G networks," stated Erik Ekudden, Ericsson Chief Technology Office.

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