Nokia Bolsters 5G R&D Coffers With $283 Million Loan

Nokia borrowed a further $283 million for the financing of 5G research and development activities in Europe, bringing the total amount of publicly announced 5G financing to $851 million. The Finland-based vendor signed the latest loan transaction with the Nordic Investment Bank and said the funds would primarily be used for the development of new 5G-related products and services for different business areas. Nokia added that the loan has an average maturity of about five years after disbursement. Kristian Pullola, chief financial officer at Nokia, welcomed the financing commitment from the bank, declaring that “it bolsters the momentum we have already seen this year as the era of 5G begins.” The new deal also comes hot on the heels of a $567 million loan from the European Investment Bank (EIB), backed by the European Fund for Strategic Investments (EFSI). The EFSI is one of three pillars of the Investment Plan for Europe, the so-called Juncker Plan. A Nokia spokesperson confirmed that the “public figure” for 5G financing is $851 million so far but said the vendor has not provided a figure for planned R&D spending in the coming years. “For reference, we spent $4.9 billion on R&D in 2017, and in coming years the priority of spending is on 5G versus legacy technologies,” the spokesperson added.