The Export-Import Bank of the United States has authorised two direct loans worth a total of US$461m to Hong-Kong based satellite operator Asia Broadcast Satellite.
The financing is split between a US$171.29m direct loan to finance the purchase of the…
The Export-Import Bank of the United States has authorised two direct loans worth a total of US$461m to Hong-Kong based satellite operator Asia Broadcast Satellite.
The financing is split between a US$171.29m direct loan to finance the purchase of the ABS-2 satellite from Space Systems /Loral and a US$289.71m loan for the purchase and launch of two all-electric Boeing satellites on a SpaceX Falcon-9 rocket. The loans also cover the purchase of launch-plus-one insurance by Aon.
Commenting on the transaction, Tom Choi, ABS’ chief executive said: “We are absolutely delighted with the support of Ex-Im Bank to provide us financing for our upcoming satellite and launch platforms. In ABS-2, Space Systems/Loral provides us with one of the largest satellites ever to be launched over Asia.
“Separately, the combination of Boeing 702SP satellites and the Falcon-9 launch vehicles will revolutionize the fixed satellite industry with the most cost effective delivery of satellites into orbit.
“With these satellites, ABS will extend the reach of affordable and reliable communications and broadcast services to the emerging markets of the world. We are proud to be partnered with such innovative companies and we are extremely thankful for Ex-Im’s financing support.”
HSBC and ING advised ABS during the ECA application process. Milbank is representing both ABS and Satmex on their ECA financing applications for the all-electric satellties.
Scheduled to be launched by Arianespace in 2013, ABS-2 was first ordered in October 2010. As such, the Ex-Im loan is a reach-back financing, akin to the one the export credit agency recently made to Vietnam Post and Telecommunications Group (VNPT) to support the funding of the Lockheed Martin-built Vinasat-2 satellite.
Based on SS/L’s FS1300 platform, ABS-2 is a triple-frequency satellite with 32 C-, 50 Ku- and 8 Ka-band transponders. The spacecraft will be located at 75E, ABS’ prime orbital location where ABS-1, ABS-1A, and ABS-1B are currently located.
As for the US$289.71m loan for the two all-electric-propulsion satellites, this is the first time Ex-Im Bank has provided support for a SpaceX mission.
SpaceX president Gwynne Shotwell said it would not be the last. “Ex-Im Bank’s financing of the ABS mission on a Falcon 9 launch vehicle marks the first SpaceX international launch deal to receive Ex-Im backing, and we look forward to many more to come.”
The satellites’ manufacturer Boeing, on the other hand, has a historically strong relationship with Ex-Im. In 2011, the export credit agency authorised approximately US$11bn of loans connected to the aerospace giant, including a US$700m loan to MSS operator Inmarsat to help fund Boeing’s construction of its three Ka-band I-5 satellites. In July 2012, Ex-Im then guaranteed a US$922m loan from JPMorgan Chase to fund the three satellite Mexsat constellation that the Mexican Secretariat of Communications and Transportation ordered from Boeing under a US$1bn contract.
The two 702SP C- and Ku-band satellites, one of which will be named ABS-3A, were ordered as part of a four satellite joint procurement agreement between Boeing and ABS and Mexican satellite operator Satmex. Under that deal, ABS committed for two satellites, Satmex for one and then both companies have an option on the fourth satellite.
The two satellites are slated to be launched by SpaceX in early 2015 from Cape Canaveral.
