Eutelsat Secures Major State-Backed Financing for Satellite Expansion

Eutelsat has successfully arranged a substantial capital raise to fund its strategic ambitions in low Earth orbit (LEO). The satellite operator has secured approximately one billion euros in financing, a move that solidifies its financial foundation for the next generation of its OneWeb constellation and strengthens its competitive stance in the global connectivity market.

The core of this financial package is a contract with Airbus Defence and Space for the manufacture of 340 new LEO satellites. This hardware order is intended to augment the existing fleet, building upon 100 previously ordered units. The primary objective is operational continuity, ensuring the seamless replacement of aging satellites as they reach the end of their service life. Technologically, this expansion is designed to meet rising long-term demand for low-latency connections, crucial for applications in mobile connectivity and broadband services.

With this capital commitment in place, Eutelsat's immediate focus shifts to the operational execution of the bond issuance and the production timeline with Airbus. A successful capital market transaction will effectively underwrite the company's technical infrastructure development for the coming years.

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French Government Provides Strategic Guarantee

The financing structure is notably complex and enjoys significant political support. While a consortium of commercial banks is providing the funds, the pivotal element is a state-backed guarantee. The French government, via its export credit agency Bpifrance Assurance Export, is guaranteeing about 975 million euros of the total.

This arrangement highlights the strategic importance France places on maintaining technological autonomy in the space sector. The release of funds is contingent upon specific conditions, including Eutelsat's successful placement of a bond on the capital market to finalize access to the credit facility.

Key Transaction Details:

• Total Volume: Approximately 1 billion euros
• Government Guarantee: 975 million euros (via Bpifrance)
• Industrial Partner: Airbus Defence and Space
• Hardware Order: 340 new LEO satellites