Nokia has become one of the first European corporates to link the pricing of some of its loans to its credit default swaps as banks look for new ways to ensure they are being paid enough for the risk they are taking lending to companies.
Typically, a borrower will arrange a so-called revolving credit facility, like an overdraft facility, with a bank at a fixed margin over the London interbank offered rate, the rate at which banks lend to each other.
