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Spanish banks Santander and EBN lead 31 million financing for PLD Space's MIURA 5 launcher

12 July 2024.

The Spanish space launcher company PLD Spae has signed a €31.2 million syndicated loan with Banco Santander, EBN Banco and the Instituto de Crédito Oficial (ICO). The transaction is covered by Cesce's Strategic Investments Policy and with legal counsel from Deloitte and Watson Farley & Williams.

This financing is earmarked for the MIURA 5 space launcher programme, encompassing both its technological development and the expansion of PLD Space's industrial capabilities, particularly the associated infrastructure. Additionally, it will support the company's corporate growth, which expects to conclude 2024 with 300 employees. PLD Space's goal is to conduct the first launch of MIURA 5 by the end of 2025 and begin commercial operations in 2026, with the aim of exceeding 30 launches annually by 2030

Banco Santander and EBN Banco act as co-lead banks for this syndicated loan, which includes participation from the ICO. Additionally, EBN Banco serves as the agent bank and guarantee agent. The financing is underwritten by CESCE insurance, framed within its strategic investment insurance line dedicated to the aerospace sector.

The transaction marks a significant milestone in Europe within a sector where bank financing is rare. This accomplishment furthermore highlights PLD Space's business model as highly market-focussed, demonstrating a substantial level of operational and financial maturity

Ezequiel Sanchez, Executive President of PLD Space, said: "Securing the support of major banks like Banco Santander, EBN Banco and ICO, along with insurance from Cesce, is a significant achievement for us. This rare operation in the space launcher sector enables us to advance our plans while safeguarding our shareholders' investment.”

The operation was signed at the headquarters of the Ministry of Economy, Trade and Enterprise and was presided over by the Secretary of State for Trade, Amparo López Senovilla, who accompanied the representatives of the entities involved in the financing project.

López Senovilla stressed that "This operation, part of the PERTE Aerospace programme, demonstrates the Government's steadfast commitment to supporting the growth of Spanish companies. The MIURA 5 space launcher project benefits from this support, with Cesce providing coverage on behalf of the State".

Itziar Letamendi, Global Head of Growth Debt of Banco Santander, said that "We are delighted to support this operation and contribute to the development of leading sectors such as aerospace. MIURA 5 project is evidence of the technological capabilities of Spanish companies and their capacity to compete in Europe and the world. Santander is proud to participate and support the success of this project".

Rafael Gómez Perezagua, Chairman of EBN Banco, comments: "We are proud to be able to contribute to the development and internationalization of Spanish businesses, particularly in high-value sectors like aerospace. The MIURA 5 project, led with expertise by PLD Space, is both relevant and strategic. This aligns with our philosophy of tailored investment banking and collaboration with exceptional partners such as ICO, CESCE, and Banco Santander.”

José Carlos García de Quevedo, Chairman of ICO, stressed that "The ICO Group's involvement in this loan demonstrates our commitment to promoting high-impact projects within the framework of the Recovery, Transformation, and Resilience Plan. In collaboration with the private sector, we aim to generate quality employment and drive the growth of Spanish companies.”

Fernando Salazar, Chairman and CEO of Cesce, stated that “this operation, covered under the Strategic Investment Policy, is another example of the support we provide to companies in their internationalisation projects. We created this product to ensure the financing of companies that market Spanish products with a highly technological, digital and/or ecological component. The aim is to create a renewed "export offer" in the sectors of the economy of the future, or rather of the present. And the aerospace sector is clearly one of them.”

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