STOCKHOLM (dpa-AFX) - Swedish telecom equipment maker Ericsson (ERIC), in its update on risk factors for euro corporate bond prospectus, said that there is a risk that the decision by the Post and Telecommunication Authority to exclude Chinese vendors' products from the 5G auction in Sweden may adversely impact the economic interests of Sweden and Swedish industry, including those of Ericsson.
Ericsson, which is currently in the process of issuing a 500 million euros unsecured 8-year bond under its EMTN program, said that Ongoing geopolitical and trade uncertainty from a range of factors may have a material adverse impact on business, operations, business prospects and consequently on operating results, financial conditions and ability to meet targets.
There are uncertainties for the future bilateral trading relationship between China and several countries as a result of restrictions towards Chinese vendors in national 5G networks.
Ericsson said it is invited to various ongoing tender processes in China, but the final outcome remains uncertain. It is the company's current assessment that the risk has increased that Ericsson will in those tenders be allocated a significantly lower market share than its current market share.
Copyright RTT News/dpa-AFX
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