Ericsson has inked two funding agreements with the European Investment Bank (EIB), totaling €420 million, with a disbursement of €250 million in December 2023.
This move is geared towards fortifying Ericsson’s financial position and flexibility while supporting its research and development (R&D) initiatives in enhanced wireless technology from 2023 to 2025.
The loans from EIB are pivotal in advancing Ericsson’s commitment to reaching a Net Zero target by 2040, primarily through reducing energy consumption in mobile networks on a global scale. Carl Mellander, Ericsson’s Chief Financial Officer, emphasized the significance of wireless technology in the transition to a low-carbon economy.
“The signing of the funding agreements 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,” Carl Mellander said.
The funding serves as a crucial component of Ericsson’s broader financing strategy, complementing other funding sources. In December 2023, the company secured a 7-year €100 million green funding agreement with the Nordic Investment Bank (NIB) to further support R&D investments in wireless technology.
Additionally, on November 23, 2023, Ericsson placed a green Euro-denominated bond worth €500 million with a 4.5-year maturity. The bond, issued within Ericsson’s Green Financing Framework under the Company’s Euro Medium Term Note Program (EMTN), underscores the company’s commitment to sustainable financing practices.