NSN seeks to raise up to €700 million through public financing

NSN seeks to raise up to €700 million through public financing

Nokia Siemens Networks is seeking raise up to €700 million through public financing in a high yield bond issuance.

The vendor, which has turned to public financing for the first time, is hoping the issuance of a high yield bond will help attract broader investor interest in the telecoms equipment maker.

NSN is hoping it will raise enough money to reduce existing bank debt, in addition to funding future investment.

This initial move suggests the company could be open to a future flotation, according to the Financial Times, and its parent companies Nokia and Siemens had talked to private equity groups about a sale of the company last year but a deal has not yet surfaced.

Since then, the vendor has injected €1 billion in equity, and NSN has seen an improvement in the vendor market, which has struggled particularly in Europe since Chinese companies ZTE and Huawei entered the market.

NSN will cut 17,000 jobs by the end of this year, and will further divest a large portfolio of non-core assets in line with its cost cutting approach. Its new strategy appears to be working, with three consecutive quarters of profit, which has increased the possibility of a flotation sale of the company in the coming year.

Sources close to the matter, however, suggest its owners have no plans for an exit at present.

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