Nokia Siemens Networks has raised more than EUR 1.2 billion from a consortium of 14 European and US banks, the Financial Times reported. NSN needed to replace a EUR 2 billion debt facility set to expire this summer that was used to support corporate activities. There were fears in the banking community the company would struggle to find sufficient finance given difficult trading conditions, which forced it to announce 17,000 job losses in November against a backdrop of poor corporate lending. Nokia and Siemens bailed NSN out with an additional EUR 1 billion of equity last year after attempts to sell the business failed. NSN has agreed a forward starting facility with the 14 banks and has kept the option of adding more banks to the group in the first quarter to provide additional money given delays caused by the uncertain economic climate at the end of last year. The number of the banks involved, which include JPMorgan, Citi, Bank of America, Royal Bank of Scotland and Standard Chartered, reflects the difficulty in raising debt in 2011. One source close to the negotiations said fundraising conditions had worsened as fears over a collapse of the euro grew, which he said had made the process harder. The terms of the debt have been made more onerous than the existing facility, which was agreed in 2009, and there will be continued concern given the short-term nature of half of the agreed debt. About EUR 600 million will be provided as a one-year term loan expiring in summer 2013. The remainder is on a three-year term. NSN will look at raising money in the capital market through bond issuance, according to one source. NSN declined to comment.
