Ericsson successfully issued its first green bond worth €500 million as part of a wider sustainability push, with the proceeds exclusively allocated to investments in energy efficiency.

The vendor stated the bond has a 4.5 year maturity and the issue follows a roadshow where it presented its business strategy and how it is linked to the company’s ESG targets.

Late last year, Ericsson set the wheels in motion for such a move after establishing a green framework to promote and enable financial investment in energy efficient technologies through issuing the bonds and other green financing instruments.

Carl Mellander, the company’s CFO, said successful placement of the green bond confirms market confidence in Ericsson’s long-term competitiveness and its sustainability ambitions.

“Issuing the bond is a direct consequence of our work to fully integrate sustainability into our finance operations,” he said. “The proceeds raised will support R&D investments in enhanced energy performance in both existing and future solutions.”

He also said green-focussed investments would help strengthen operators’ competitiveness and “enable further societal climate action through solutions made possible by mobile connectivity”.