Finnvera Backs Nokia’s $1.5 Billion 5G Deal with India’s Reliance Jio

Finnvera Backs Nokia’s $1.5 Billion 5G Deal with India’s Reliance Jio

(IN BRIEF) Finnvera, Finland’s export credit agency, has granted Nokia’s 5G deliveries a buyer credit guarantee worth USD 1.5 billion, marking one of its largest financing arrangements in history. The deal supports Nokia’s pivotal role in India’s 5G revolution, where Reliance Jio, the country’s leading telecom operator, is constructing a nationwide 5G network. With approximately 400 million customers, Reliance Jio’s project aims to advance India’s digital transformation and position the nation as a pioneer in 5G technology. Finnvera’s involvement underscores its commitment to facilitating Finnish export companies’ global market opportunities, particularly in sectors like telecommunications.

(PRESS RELEASE) HELSINKI, 25-Apr-2024 — /EuropaWire/ — Finnvera has granted Nokia’s 5G deliveries a buyer credit guarantee worth USD 1.5 billion, that is one of the biggest single financing arrangements and export credit guarantees in Finnvera’s history and the biggest in telecommunications sector. Nokia’s technology has a key role in India’s 5G revolution, as the world’s third largest telecommunications company, number one in India, Reliance Jio Infocomm Limited is building a pan India 5G network. Nokia announced its share in the project in October 2022. The financing arrangement played a key role in enabling the export transaction.

Finnvera’s export credit guarantee agreement was signed in April 2024. As an export credit agency Finnvera guarantees export credits granted by commercial banks to the buyer customers of the Finnish export companies. Organising financing for export companies’ foreign customers plays an increasingly central role in export trade negotiations.

Even if the buyer is a global company, the export credit guarantee institution can play a key role in financing, as large companies strive to obtain financing from a variety of sources. Financing had a key role in this case as well”, says Finnvera’s Senior Adviser Miska Kuhalampi.

Reliance Jio, a subsidiary of the Indian Reliance Industries conglomerate, is the leading telecom operator in India with it’s approximately 400 million customers. The company is now building a thorough 5G network across India that aims to bring a fast mobile network services available to the citizens of the populous state. The project strengthens India’s digital transformation and technological leap in a way that would not otherwise be possible. The project makes India a pioneer country in 5G technology. The scale of the project and the need for technology are gigantic. Nokia announced its share in the project in October 2022.

The Reliance Jio investment in the Indian 5G network is substantial, and we are happy to be able to support Nokia’s role as a key supplier of 5G equipment in the project. As an export credit agency Finnvera’s task is to promote the opportunities of Finnish export companies in the global market. In the telecommunications sector this transaction is the biggest in which Finnvera has been involved”, says Finnvera’s Executive Vice President Jussi Haarasilta.

Long-planned export projects are being promoted ahead

In recent years the granting of Finnvera’s export credit guarantees and special guarantees has focused on telecommunications, pulp and paper and mining sectors. In 2023 the amount of export credit guarantees and special guarantees granted totalled EUR 5.4 billion (5.9).

The annual volume of export financing provided by Finnvera is always influenced by the timing of individual major export transactions. Long-planned export projects are being promoted regardless of the outlook in the world economy. The sizes of individual export projects have also grown.

Media Contact:

Jussi Haarasilta
Executive Vice President, Large Corporates, Finnvera plc
tel. +358 29 460 2601

SOURCE: Finnvera