Eutelsat secures €1b financing for OneWeb satellite procurement

Eutelsat, the France-based satellite operator, has secured €1 billion in financing to support OneWeb satellite procurement and network expansion. The funding will enable manufacturing and launch of additional low Earth orbit satellites, strengthening the combined fleet following Eutelsat's merger with OneWeb in 2023.

Reuters reported that the financing package comprises debt facilities from a consortium of international banks, with commitments from BNP Paribas, Crédit Agricole and Société Générale among lead arrangers. The capital will fund satellite orders, launch services and ground infrastructure development over the next three years.

Eutelsat OneWeb operates a constellation of over 600 low Earth orbit satellites providing broadband connectivity to enterprise, government and mobility customers globally. The procurement programme will add capacity to support growing demand for satellite internet services across aviation, maritime, telecommunications and remote connectivity markets.

The company stated that new satellite orders will be placed with Airbus Defence and Space, OneWeb's primary manufacturing partner, with launches scheduled through 2027. The procurement timeline aligns with network expansion targets and replacement of first-generation satellites reaching end-of-life operations.

The €1 billion financing structure includes performance-linked terms tied to network deployment milestones and revenue targets. Eutelsat will draw funds progressively as satellite manufacturing advances and launch contracts are executed with providers including SpaceX and Arianespace.

The procurement investment positions Eutelsat OneWeb to compete with satellite internet providers including Starlink and Amazon's Project Kuiper in the expanding low Earth orbit connectivity market. The merged entity serves over 50 countries across Europe, Africa, Asia-Pacific and the Americas.

Industry analysts noted that satellite procurement financing has become increasingly competitive as operators seek to scale constellations rapidly whilst managing capital intensity and technological obsolescence risks.

Read the complete story on Eutelsat's satellite procurement strategy and network expansion plans.