Wedonay.com Report on Mar 7th, French satellite operator Eutelsat announced on March 6 that it has completed a €5 billion (approximately $5.8 billion) refinancing plan. This plan aims to fund the renewal of the OneWeb low Earth orbit (LEO) broadband constellation and support Europe's IRIS² sovereign connectivity project, marking a key step in the company's multi-orbit service transformation.
The company stated that by issuing €1.5 billion in bonds, it has activated other debt financing to support investments from 2026 to 2029. Previously, an equity injection led by the French government as the largest shareholder had been completed. Despite the recent failure of a ground infrastructure sales plan, which resulted in a shortfall of approximately €550 million in fundraising, the company emphasized that this will not affect its ability to fund its growth strategy.
This bond issuance unlocked multiple funding sources: nearly €1 billion in financing from the French export credit agency, related to Airbus Defence and Space, for providing 440 OneWeb replacement satellites; approximately €900 million in bank debt, including term loans and revolving credit facilities, for refinancing existing loans; and a €200 million amendment agreed with the European Investment Bank to simplify the capital structure.
Eutelsat's Chief Financial Officer, Sébastien Rouge, said, "With this strengthened financial foundation, Eutelsat is well-positioned to accelerate the deployment of its multi-orbit strategy, support the future European IRIS² constellation, and consolidate its position as Europe's leading space connectivity provider."
The financing plan covers the €2.2 billion the company needs over the next three years to replenish OneWeb, as the first-generation satellites approach their design life end. Most of the current 654 satellites in the OneWeb network were launched between 2020 and 2023, with an expected operational lifespan extending to around 2027-2028.
The company has also committed approximately €2 billion to participate in the European IRIS² public-private partnership, which aims to provide multi-orbit constellation services by the end of this decade, including operators SES and Hispasat. These investments come as the company expands its low Earth orbit business, facing increasing competition from SpaceX's Starlink, Amazon, and Telesat, among others.
In the six months ended December 31, OneWeb's revenue grew nearly 60% year-on-year to approximately €111 million. LEO connectivity now accounts for about 20% of the company's total revenue, while its traditional geostationary orbit TV business continues to decline, with video revenue falling 12.3% to about €267 million. Overall revenue increased slightly by 0.1% to approximately €592 million, primarily driven by OneWeb, while adjusted EBITDA fell 6.1% to about €308 million.
