Eutelsat Secures Major Funding Backed by French State Guarantee

Satellite operator Eutelsat has achieved a significant milestone in its capital-raising efforts. The company has arranged financing of approximately one billion euros, a move that will accelerate the expansion of its OneWeb satellite constellation. A key feature of this deal is the substantial backing provided by the French state, which market observers see as a strong endorsement of the group's strategic direction.

The funds are being provided by a consortium of commercial banks. Crucially, the arrangement is underpinned by a guarantee covering about 975 million euros from Bpifrance Assurance Export, France's export credit agency. This government-backed security significantly improves Eutelsat's access to capital. The loan ranks pari-passu with other senior debt but comes with specific conditions. Notably, Eutelsat must successfully execute a bond issuance to unlock the disbursement of the loan tranches.

Proceeds are earmarked for a core operational purpose: fulfilling a contract with Airbus Defence and Space for the supply of 340 Low Earth Orbit (LEO) satellites. These units, to be manufactured in Toulouse, France, are intended to progressively replace older models within the fleet. This investment is designed to ensure the long-term performance and capability of Eutelsat's OneWeb services.

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Key Transaction Points:

• Total Funding: Approximately €1 billion
• State Guarantee: €975 million via Bpifrance
• Primary Use: Procurement of 340 Airbus LEO satellites
• Lead Coordinator: Société Générale (Sole Global Coordinator)

A Pivotal Step in Post-Merger Strategy

For Chief Executive Jean-François Fallacher, this financing represents a central component of the company's broader refinancing strategy. Following its merger with OneWeb in 2023, Eutelsat has positioned itself as the only fully integrated operator leveraging both geostationary (GEO) and LEO satellites. Investing in next-generation hardware is viewed as essential to maintaining competitiveness in the expanding global connectivity market and keeping its satellite network technologically current.

Attention now shifts to the execution phase. Investors are likely to monitor closely the terms on which Eutelsat can launch the required bond issue, as this step is mandatory for the final release of the secured loan funds.