The loans from the European Investment Bank will fund R&D into wireless tech from last year to next year
Ericsson has signed two agreements for funding with the European Investment Bank (EIB) for a total of €420 million of which €250 million was handed over last December.
The vendor said that as well as strengthening its balance sheet and financial flexibility, the loans have been granted to finance R&D in wireless tech between 2023 and 2025.
Ericsson said these investments are an important contributor to achieving its Net Zero target by 2040 through reduced energy consumption in the mobile networks globally.
Carl Mellander, Ericsson’s CFO, says, “ This will benefit our operator customers as well as other industrial sectors in their efforts to create a positive impact.”
In December 2023, Ericsson signed a seven-year €100 million green funding agreement with the Nordic Investment Bank (NIB). The loan will also 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).