Nokia completed a €500 million ($543 million) loan with the European Investment Bank (EIB), supported by the European Fund for Strategic Investments (EFSI). Nokia will use the loan to further accelerate its research and development of 5G technology
5G technology is expected to enable faster speeds, massive connectivity, decade-long battery life for sensors and super-responsive and reliable networks for customers. This could power on-demand virtual reality and augmented reality experiences, driver-less vehicles, medical monitoring, advanced industrial automation services and other applications, all requiring ubiquitous, low-latency connectivity.
EIB Vice-President Alexander Stubb, responsible for lending in Northern Europe, said, “5G is happening fast, faster than most people even expected. It’s anticipated that it will enable entirely new business cases, while dramatically enhancing existing wireless applications. I think bringing 5G to the market will definitely improve people’s lives, as the motto for the EIB’s 60th anniversary states.”
Nokia CFO Kristian Pullola added, “We are pleased to land this financing commitment from the EIB, who shares our view of the revolutionary nature of 5G – and the realization that this revolution is already underway.”
The loan, which extends Nokia’s debt maturity profile, has an average maturity of approximately five years after disbursement, which can take place at any time during the next 18 months.