Ericsson signs funding agreement with EIB to develop enhanced wireless technology

The European Investment Bank (EIB) and Ericsson have signed two funding agreements for a total of 420 million Euro, with the first tranche worth 250 million Euro disbursed in December 2023.

In addition to strengthening Ericsson’s balance sheet and financial flexibility, the loans will support its research, development and innovation (RDI) investments to develop enhanced wireless technology between 2023 and 2025, and to increase network energy efficiency.

The RDI investments are a key step on Ericsson’s path to reaching its 2040 net-zero target through reduced energy consumption in mobile networks.

“When it comes to developing 5G technology, Ericsson is a catalyser of technological progress and has long been at the forefront with its research, development and innovation. The EIB is proud to continue supporting Ericsson’s ambitions to remain a global leader in developing the future of mobile telecom technologies, ensuring European independence in critical strategic communications,” said EIB Vice-President Thomas Östros.

Ericsson CFO Carl Mellander: “Wireless technology will play a key role in transitioning towards a low-carbon economy. The signing of the funding agreement 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.”