As demand for low Earth orbit (LEO) connectivity grows, satellite operators are under pressure to refresh fleets and secure long-term financing. Replacing ageing satellites while maintaining uninterrupted service requires large upfront capital.
Paris-based Eutelsat has signed close to €1 billion in Export Credit Agency (ECA) financing to fund the procurement of new LEO satellites for its OneWeb constellation.
The financing, worth around €975 million equivalent, will be provided by a pool of commercial banks and backed by a French state guarantee via Bpifrance Assurance Export.
The loan will be granted to Eutelsat Communications SA and will rank equally with the company’s other debts. Disbursement is subject to certain conditions, including the issuance of a bond by Eutelsat Communications.
Funding new Airbus satellite order
The financing supports Eutelsat’s recently announced contract with Airbus Defence and Space for 340 new LEO satellites, in addition to 100 satellites already ordered. The spacecraft will be built at Airbus’s facility in Toulouse.
These new satellites are intended to gradually replace existing units in the OneWeb constellation as they reach the end of their operational lifespan, ensuring continuity of service for customers.
Jean-Francois Fallacher, Chief Executive Officer of Eutelsat, says, “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, Sole Bookrunner, and Mandated Lead Arranger, alongside Commerzbank, Crédit Agricole Corporate and Investment Bank (also serving as Facility Agent), ING Bank, and Helaba.
Rothschild & Cie advised Eutelsat on the transaction, while Latham & Watkins acted as legal advisor to the company. De Pardieu Brocas Maffei advised the lending banks.
A combined GEO-LEO operator
Eutelsat is a satellite communications company that provides connectivity and broadcast services globally. It was created in 2023 from a merger with OneWeb, and now operates 33 Geostationary (GEO) satellites and over 600 Low Earth Orbit (LEO) satellites.
The company serves four main sectors: Video, Mobile Connectivity, Fixed Connectivity, and Government Services. Eutelsat is headquartered in Paris and has more than 1,600 employees across over 75 countries. It is listed on the Euronext Paris and the London Stock Exchange under the ticker ETL.
