Nokia has signed a EUR 500 million loan transaction with the European Investment Bank (EIB) to enhance its research and development of 5G technology.

Nokia CFO Kristian Pullola said: “This financing bolsters our 5G research and continues the broader momentum we have already seen this year in terms of customer wins.”

Nokia recently signed the world’s largest 5G equipment deal with T-Mobile US to roll out 5G mobile network across the US.

At the same time, Huawei, the main rival of Nokia, is facing a ban on the sale of 5G equipment to telecom operators in Australia.

Ericsson, one of the leaders in 5G equipment to telecom operators, recently said it would expand its US team to focus on 5G deals.

The loan, which extends Nokia’s debt maturity, has an average maturity of nearly five years after disbursement, which can take place at any time during the next 18 months.