- Finland-based telecommunications company Nokia has reportedly drawn a €500 million loan to accelerate 5G technology development
Finland-based telecommunications company Nokia has reportedly drawn a €500 million loan recently to accelerate the development of 5G technology. This detail — which was discovered by Reuters — was revealed in the company’s annual report.
The R&D loan facility was provided by the European Investment Bank (EIB) and it has an average maturity of about five years after disbursement. The terms were agreed to in August 2018 and it was available until last month. Reuters said that Nokia drew the loan on February 24.
In late 2019, Nokia stopped making dividend payments. And the company said it would need to invest more in the development of 5G equipment.
Recently, Nokia hired Pekka Lundmark as the company’s new CEO after Rajeev Sure stepped down.
“Nokia will use the loan to further accelerate its research and development of 5G technology, the next-generation mobile telecommunication standard,” stated Nokia in a loan document.