Eutelsat Secures Major State-Backed Financing for Satellite Expansion

Eutelsat has achieved a pivotal milestone in funding its next-generation satellite infrastructure. The company has arranged approximately one billion euros in financing, backed by substantial guarantees from the French state, to expand its OneWeb satellite constellation. This move provides the essential capital required to maintain the group's competitive technological trajectory.

The freshly secured capital is earmarked for a significant operational investment. Eutelsat will channel the funds into a large-scale order with Airbus Defence and Space for the production of 340 Low Earth Orbit (LEO) satellites. Manufacturing will take place at the Airbus facility in Toulouse. This order supplements a pre-existing contract for 100 units.

The core objective of this substantial expenditure is the comprehensive modernization of the OneWeb network. The new satellites are intended to gradually replace older models, ensuring service continuity. Company leadership views this as a critical step to remain competitive against rival systems, such as Starlink. Chief Executive Jean-Franis Fallacher characterized the agreement as a fundamental component of Eutelsat's refinancing strategy, enabling the steady advancement of its LEO activities.

Financing Structure with French State Support

The satellite operator confirmed the signing of an export credit financing facility, which is primarily secured by Bpifrance Assurance Export. This state agency is providing coverage equivalent to roughly 975 million euros.

This financing structure is crucial for Eutelsat. The government guarantee allows the corporation to access capital on more favorable terms than would typically be available on the open market without such backing. A consortium of commercial banks will supply the liquidity, while the French state assumes the majority of the associated risk.

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Key Details of the Agreement:
* Financing Amount: Approximately 1 billion euros in export credit financing
* Primary Guarantor: Bpifrance (acting for the French state)
* Funds Allocation: Construction of 340 LEO satellites
* Industrial Partner: Airbus Defence and Space

Disbursement Contingent on Bond Issue

Although the agreements have been signed, the capital will not be released immediately. The drawdown of the credit tranches is subject to specific conditions precedent. A pivotal requirement is the successful placement of a planned bond issuance by Eutelsat Communications. Only once this bond offering is completed will the state-guaranteed credit line become fully effective, thereby triggering the financial authorization for the new satellite production at Airbus.

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