APT Satellite has entered into a framework agreement with China Great Wall Industry Corporation (CGWIC) as the Hong Kong-based operator looks to order its latest bird, Apstar-10.
CGWIC would be responsible for the in-orbit delivery of the new satellite…
APT Satellite has entered into a framework agreement with China Great Wall Industry Corporation (CGWIC) as the Hong Kong-based operator looks to order its latest bird, Apstar-10.
CGWIC would be responsible for the in-orbit delivery of the new satellite under the agreement, including its payload, financing and launch services.
APT Satellite said the move is part of its strategy to become one of the leading regional providers of transponder capacity and related services in the Asia Pacific region.
“By the development and launch of Apstar-10 satellite, the group will be able to further expand satellite transponder capacities and services in the region, thereby meeting the market demand for satellite capacities of the broadcasters and telecommunications operators in the region, and injecting new impetus for the group’s future development,” it said in a stock exchange filing.
A spokesman declined to comment further on the project because its specifications were still being discussed.
The company is meanwhile on track to launch its US$216m Apstar-9 satellite in Q4 2015.
Apstar-9 is also being delivered by CGWIC, whose parent, state-run China Aerospace Science and Technology Corporation, indirectly owns just over half of APT Satellite.
The operator has been considering securing debt to partly fund Apstar-9. It has already paid 20% of its CGWIC contract through internal resources. The group is required to pay the remaining balance within one month of the in-orbit delivery.
APT Satellite has funded its satellites with a 50:50 debt to internal funding ratio in the past, with Bank of China (Hong Kong) leading the financing.
Apstar-9 is being launched to 142E, where it will use its 32 C-band and 14 Ku-band transponders to build on the coverage of Apstar-5 at 138E, Apstar-6 at 134E and Apstar-7 at 76.5E.
Investec Capital was hired as a financial adviser for Apstar-9, and CGWIC has the option to buy up to 35% of the satellite’s transponders under its deal with APT Satellite.
