3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||17 Dec 2019|
|Customer:||Telefonaktiebolaget LM Ericsson (publ)|
|Amount in USD:||USD 150 million|
|Amount in EUR:||EUR 134.7 million|
|NACE sector / loan type:||Research and development|
|Business area:||Infrastructure, transportation and telecom|
The loan has been provided to finance Ericsson's R&D costs during 2020–2022. The focus of the research programme is on the continued development of fifth generation (5G) cellular technology for telecom networks, and the global roll-out of 5G network services.
5G is a mobile communication standard that enables device-to-device and massive machine communication. 5G is taking off faster than anticipated, especially as a capacity enhancer in metropolitan areas.
Ericsson's current research programme focuses on cost efficiency in leveraging the speed, latency, and security characteristics of 5G. The main part of the R&D activities will be carried out in Sweden, as well as in other European countries.
This is the third loan signed between NIB and Ericsson since 2012.
Ericsson is a global leader in communications technology and services with headquarters in Stockholm, Sweden. The company consists of more than 95,000 employees who provide customers in 180 countries with solutions and services. Net sales in 2018 were SEK 210.8 billion. The Ericsson stock is listed on Nasdaq Stockholm and on NASDAQ in New York. Read more on www.ericsson.com
The programme will contribute to the further development and standardisation of 5G technology. Ericsson has a high R&D intensity, a strong innovation track record, and significant cooperation with academia and the private sector. This has allowed the company to develop one of the industry’s strongest patent portfolios.
The project consists of R&D investments within the telecommunications sector, and is hence rated environmentally neutral.
No significant environmental issues have been identified. Ericsson has a sustainability programme in place to reduce its in-house carbon footprint, as well as the carbon footprint of its products, and to improve supply chain management.