Nokia Siemens Networks (NSN) has raised more than 1.2 billion euros from a consortium of 14 European and U.S. banks, the Financial Times reported on Monday.
The newspaper said, without citing a source, that about 600 million euros will be provided as a one-year term loan that will need to replaced when it expires in the summer of 2013, with the remainder coming on a three-year term.
A source cited by the FT said NSN will look at raising money in the capital market through issuing bonds, which it hopes will be available before the expiry of the one-year debt.
The banks involved in the deal include JPMorgan, Citibank, Bank of America, Royal Bank of Scotland and Standard Chartered.
The deal signals a vote of confidence in the telecoms equipment maker's strategic overhaul, according to the FT.
NSN, which is jointly owned by Nokia, and Siemens, needed to replace a 2 billion euros debt facility set to expire this summer and which was used to support corporate activities.
Nokia and Siemens had to bail out NSN with an additional 1 billion euros of equity last year after attempts to sell the business failed.
Nokia or Siemens could not be reached for immediate comment.
(Reporting by Stephen Mangan; editing by Miral Fahmy)