Finnish telecoms
equipment maker Nokia drew a 500 million euro ($561 million) loan last month to
help it to accelerate development of 5G technology, its annual report shows.
Nokia said that its
R&D loan facility with the European Investment Bank (EIB), which has an
average maturity of about five years after disbursement, was agreed in August
2018 and available untill last month. It drew the loan on Feb. 24.
The company's
finances have been in focus since it halted dividend payments in last 2019 and
said it would need to invest more than previously expected in development of
its 5G equipment.
This week Nokia
rehired former executive Pekka Landmark from energy group Fortum as its new CEO
to lead efforts to revive its faltering 5G business.
A Nokia representative
was not immediately available to comment on details of the loan.
"Nokia will use
the loan to further accelerate its research and development of 5G technology,
the next-generation mobile telecommunication station, "the company said
when the deal was signed in August 2018.
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