With borrowing costs at record lows Nokia Siemens Networks (NSN), a joint collaboration between Nokia and Siemens for wireless gear equipment, is considering turning to the financial markets for the first time.
A report by the Financial Times citing sources close to the talks revealed that NSN which just turned a profit in the fourth quarter of 2012 thanks to cost cuts is considering the bond sale to further bolster its finances. The collaboration has seen sales of equipment grow considerably thanks to high demand for setting up 4G LTE mobile network infrastructures.
According to the report the bond sale is expected to raise around $ 1 billion for the company which will be used to pay off existing bank debt as well as fund investment for future business growth. This is a significant move for NSN which might be the prelude to a future public floatation of the company.
NSN aims to test investor demand as the company continues to grow its business helping parent company Nokia to offset some of the problems faced by its handset business. The collaboration faces tough competition from Chinese telecom equipment manufacturers Huawei and ZTE who are currently taking over the market with their low cost equipment.
Robert Jaeger, a technology, media and telecoms analyst at Societe Generale SA in London predicting the bond rating that might be given to NSN’s potential bond sale said:
“The company has shown some improvement in terms of its results. Given that it’s a difficult sector and the company’s much smaller than Ericsson, I’d expect the rating to be somewhere in the BB space.”
NSN’s bond sale will help the company further bolster its finances and help it to compete with rivals in an increasingly tough telecoms equipment market.
Source: Bloomberg/Financial Times
Sapphire Black Samsung Galaxy S III to Arrive in Canada in a Few Weeks Time – Report
Secure the Financial Health of Your Business
Lunches So Good Kids Can’t Ignore Them
Invigorating Ginger Smoothie
The U.K.’s Youngest Parents Ever
The new hair Jennifer Lawrence