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- EUR 500 million EIB loan will be used to accelerate research and development of 5G tech
- Loan backed under European Fund for Strategic Investments, part of successful Juncker Plan
The EFSI-supported loan from the EIB supports a key European technology provider, Nokia, that invests heavily in research, development and innovation (RDI) in an area which can produce enabling technologies for innovation and growth in Europe.
5G technology is expected to enable faster speeds, massive connectivity, decade-long battery life for sensors and super-responsive and reliable networks for customers. This could power on-demand virtual reality (VR) and augmented reality (AR) experiences, driverless vehicles, medical monitoring, advanced industrial automation services, and other applications - all requiring ubiquitous, low-latency connectivity.
Nokia's end-to-end network proposition goes from the radio network to the internet protocol (IP) and optical networks for transmission, the packet core network, service platforms and all the software and services associated with the whole system. In essence, Nokia's portfolio covers all the needs of a telecom operator that wishes to provide fully converged fixed-mobile communications services critical for the era of 5G.
EIB Vice-President Alexander Stubb, responsible for lending in Northern Europe, said: "5G is happening fast, faster than most people even expected. It's anticipated that it will enable entirely new business cases, while dramatically enhancing existing wireless applications. I think bringing 5G to the market will definitely improve people's lives, as the motto for the EIB's 60th anniversary states."
Nokia CFO Kristian Pullola said: "We are pleased to land this financing commitment from the EIB, who shares our view of the revolutionary nature of 5G - and the realisation that this revolution is already underway. This financing bolsters our 5G research efforts and continues the broader momentum we have already seen this year in terms of customer wins and development firsts, supporting our relentless drive to be a true leader in 5G - end-to-end."
European Commission Vice-President Jyrki Katainen, responsible for jobs, growth, investment and competitiveness, said: "Ensuring that Europe embraces and benefits from new technologies requires sustained investment. That is where the Investment Plan for Europe can play a crucial role. I am delighted that, with today's agreement, the Plan is contributing to Nokia's research and development activities across multiple European countries to advance the development of 5G technology."
The loan, which extends Nokia's debt maturity profile, has an average maturity of approximately five years after disbursement, which can take place at any time during the next 18 months.
Press Inquiries:
EIB: Tim Smit, +352 691 286423, t.smit@eib.org - Twitter #EIB60 and Instagram
Nokia: Brett Young, +358 40 140 5801, brett.young@nokia.com
European Commission: Siobhan Millbright, +32 22957361, Siobhan.millbright@ec.europa.eu - Twitter #investEU
Background information:
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2017, the Bank made available in excess of EUR 1.3 billion in loans for Finnish projects.
Founded in 1865, Nokia creates the technology to connect the world. Powered by the research and innovation of Nokia Bell Labs, it serves communications service providers, governments, large enterprises and consumers, with the industry's most complete, end-to-end portfolio of products, services and licensing. Nokia adheres to the highest ethical business standards as it creates technology with social purpose, quality and integrity. Nokia is enabling the infrastructure for 5G and the Internet of Things to transform the human experience.
About The Investment Plan for Europe
The Investment Plan for Europe focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects. The European Fund for Strategic Investments (EFSI) is the central pillar of the Juncker Plan. It provides a first loss guarantee, allowing the EIB to invest in more, often riskier, projects. So far, the projects and agreements approved for financing under the EFSI are expected to mobilise EUR 335 billion in investments and support around 700 000 SMEs across all 28 Member States. Find the latest EFSI figures by sector and by country here, or see the FAQs.
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