Eutelsat Signs Almost €1bn in Export Credit Agency Financing for the Procurement of LEO Satellites for its OneWeb Constellation

 

Eutelsat has signed a c. €1bn Export Credit Agency (ECA) financing for the procurement of LEO satellites for its OneWeb constellation.

The financing will be provided by a pool of commercial banks, which will benefit from a French State guarantee, obtained through its export credit agency, Bpifrance Assurance Export for an amount of c.€975m-eq. It will be provided to Eutelsat Communications SA and will rank pari-passu with other debts of that entity.

Its disbursement remains subject to several conditions precedent, including a bond issuance at Eutelsat Communications.

The financing backs the recently announced contract with Airbus Defence and Space for 340 LEO satellites, on top of the 100 already ordered, to be manufactured at Airbus’ Toulouse facility. These satellites will ensure full operational continuity for customers of the OneWeb LEO constellation, by progressively replacing existing satellites as their operational life comes to an end.

Jean-Francois Fallacher, Chief Executive Officer of Eutelsat said: “We are delighted to secure this crucial aspect of Eutelsat’s refinancing plan. We are grateful to the French State for its unwavering support. This funding significantly strengthens our financial structure and gives us the means to support the deployment of our LEO activities.”

Société Générale acted as Sole Global Coordinator and Sole Bookrunner, and Mandated Lead Arranger (MLA) on this financing together with Commerzbank Aktiengesellschaft, Credit Agricole Corporate and Investment Bank (acting also as Facility Agent), ING Bank N.V and Helaba – Landesbank Hessen-Thüringen.