Swedish vendor Ericsson has secured a seven-year €420 million ($456m) loan with the European Investment Bank (EIB).

Ericsson stated that €250m ($271m) of the sum had already been disbursed.

The funding will support the vendor's investments in research and development (R&D) for enhanced wireless technology until 2025.

Ericsson HQ
– Getty Images

Ericsson believes that the R&D investment will support its overall aim of becoming net zero by 2040.

“Wireless technology will play a key role in transitioning towards a low-carbon economy," said Carl Mellander, Ericsson’s CFO.

"The signing of the funding agreements with the European Investment Bank provides Ericsson with increased flexibility to drive critical research and development into making our own products more competitive and energy efficient. This will benefit our operator customers as well as other industrial sectors in their efforts to create a positive impact.”

Earlier this week, Ericsson revealed that its second round of climate action targets toward net zero has been approved by the Science Based Targets initiative (SBTi).

The vendor met and surpassed its first science-based 1.5°C-aligned Paris Agreement greenhouse gas emission reduction targets.

Ericsson said it has committed to reducing absolute scope 1, 2, and 3 greenhouse gas emissions by 90 percent between 2020 levels and the end of 2040.

In December, Ericsson signed a seven-year €100m green funding agreement with the Nordic Investment Bank (NIB) to finance R&D investments in wireless technology.

The company also issued a €500m ($543m) green bond in November - its first-ever - with a maturity of four-and-a-half years. The bond was issued under Ericsson's Euro Medium Term Note Program.