The annual report of Finnish telecommunications equipment maker Nokia shows that the company received a loan of 500 million euros ($561 million) last month to help it accelerate the development of 5G technology.
Nokia said its R&D loan agreement with the European Investment Bank (EIB) was signed in August 2018 and the loan could not be used until last month. It withdrew the loan on February 24. The average term of the loan is about five years.
The company's financial situation has been the focus of attention since it stopped paying dividends in late 2019 and said it needed more investment than previously expected to develop its 5G equipment.
This week, Nokia rehired former energy group Fortum executive Pekka Lundmark as its new CEO, placing it in charge of reviving its faltering 5G business.
Nokia said that former CEO Suri had already stated his intention to resign from this position, and they have been working on a smooth transition plan. "After 25 years at Nokia, I want to do something different," Suri said. Lundmark is expected to begin his new role at Nokia on September 1.
A reporter could not immediately reach a Nokia representative for comment on the details of the loan. When the company signed the agreement in August 2018, "Nokia will use this loan to further accelerate the development of the next-generation mobile communication standard, 5G technology."
Nokia has stated that it already has more than 2,000 essential 5G patents. This reflects Nokia's continued leadership in 5G technology development and standardization. At the same time, continuous R&D investment is increasing its patents.
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