Espoo, Finland – Nokia has announced that the EUR 800 million (one billion US dollar) senior notes issued in March 2013 by Nokia Solutions and Networks Finance B.V., the finance company of its Networks business formerly known as NSN, will be redeemed.

The redemption is part of Nokia’s planned EUR 5 billion capital structure optimization program announced on April 29, 2014, which focuses on, among other things, reducing interest bearing debt.

Nokia has announced that it plans to reduce interest bearing debt by approximately EUR 2 billion ($2.7 billion) by the end of the second quarter 2016. Once complete, the debt reduction is expected to result in annual run rate savings of at least EUR 100 million ($137 million) related to recurring interest costs. Furthermore, lowering its gross debt level is aligned with Nokia’s long-term target to return to being an investment grade company.

The redemption of the EUR 800 million (one billion US dollars) senior notes will result in annual interest expense savings of approximately EUR 55 million($75.3 million), starting in the third quarter 2014. In addition, it will eliminate certain covenants and improve Nokia’s overall debt maturity profile. The redemption of the notes is also expected to result in a one-off cost of approximately EUR 100 million($137 million) impacting the second quarter 2014 results of the company.

In line with the above, Nokia Solutions and Networks Finance B.V., which is the issuer of the notes, redeems all of its EUR 450 million($616.3 million) senior notes due 2018 and EUR 350 million senior notes due 2020, each at their principle amount plus the applicable premium and accrued and unpaid interest. The mandatory redemption will be completed on or about June 19, 2014.