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Ericsson Powers Up: Secures EUR 420M Boost For Next-Gen Wireless Technology

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Ericsson ERIC inked two agreements for funding with the European Investment Bank (EIB) for a total of EUR 420 million.

Around EUR 250 million of the funding was disbursed in December 2023. The loan will finance Ericsson’s investments in research and development (R&D) related to enhanced wireless technology between 2023 and 2025 and boost financial flexibility.

Also, the loans will finance parts of Ericsson’s R&D investments in wireless technology up to 2025.

Carl Mellander, Ericsson’s CFO, stated, “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.”

In December 2023, Ericsson penned a 7-year EUR100 million green funding deal with the Nordic Investment Bank (NIB), for financing R&D investments in wireless technology.

This week, Ericsson reported a fourth-quarter FY23 sales decline of 16% year-on-year to SEK 71.9 billion versus the consensus of $7.0 billion and EPS of SEK 1.02 versus SEK 1.82 last year vs. the consensus of $0.16.

At the end of 2023, Ericsson’s net cash stood at SEK 7.8 billion.  

Price Action: ERIC shares closed higher by 1.77% at $5.76 on Thursday.

Photo via Wikimedia Commons

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