Reports show that the Finnish telecoms company, Nokia recently took up a $561 million loan as it struggles to revive its faltering 5G business, its annual report disclosed.
The company has been trying to push the development of its 5G network through various means as the loan shows it does not have the finances it needs for the development.
The company has been focusing on how to boost its finance since it halted dividend payments in late 2019 and said it would need to invest more in development of its 5G equipment.
Details of the loan: The R&D loan facility was signed with the European Investment Bank (EIB) as far back as August 2018 but was only disbursed last month. The loan has an average maturity of about five years after disbursement according to Reuters.
While speaking about the loan, a Nokia representative said the company would use the loan to further accelerate its research and development of 5G technology, the next-generation mobile telecommunication standard.
Recall that Nairametrics recently reported that Nokia had partnered with Intel as well as Marvell Technology (MRVL.O) to enable it’s smooth transitioning to 5G. Having struggled with its Reefshark system on chips (SoC), Nokia said it needed several partnerships to enable it support and achieve its goal.
About the company: Nokia is a Finnish multinational corporation founded on the 12 May 1865 as a single paper mill operation. The company continued to expand throughout the 19th century, branching into several different products. By 1967, the Nokia Corporation was formed and in the late 20th century, the company branched into mobile technology, taking advantage of the increasing popularity of computers and mobile phones.