The Export-Import Bank of the United States has guaranteed a US$922m loan from JP Morgan Chase to the Mexican Secretariat of Communications and Transportation (SCT) to fund the construction of the three satellite Mexsat constellation.
The…
The Export-Import Bank of the United States has guaranteed a US$922m loan from JP Morgan Chase to the Mexican Secretariat of Communications and Transportation (SCT) to fund the construction of the three satellite Mexsat constellation.
The government-owned Mexsat system is intended to offer both mobile and fixed satellite services to support national security, civil and humanitarian efforts.
ExIm Bank is supporting the deal because US-based satellite manufacturers Boeing Satellite Systems and Orbital Sciences are constructing the spacecraft.
Under the US$1bn contract signed by the SCT and Boeing in December 2010, the latter is to deliver a complete turnkey satellite system comprising two L-band mobile satellites, MEXSAT-1 and MEXSAT-2, and one extended C- and Ku-band fixed service satellite, MEXSAT-3.
Boeing is currently constructing the first two birds based on its 702HP platform. Both satellites will carry a 22-metre L-band reflector for mobile satellite services, complemented by a 2-metre Ku-band antenna.
As for MEXSAT-3, Boeing subcontracted Orbital Sciences to build the satellite. Based on Orbital’s Star-2 platform, the fixed satellite services spacecraft is smaller than its peers and will be the first to be launched with Arianespace due to loft the satellite by the end of 2012. ISB recently completed the placement of the launch-plus-one insurance for the satellite.
Commenting on the deal, Craig Cooning, vice president and general manager of Boeing Space and Intelligence Systems, said: “Boeing’s Geo-Mobile product line is the most capable mobile satellite available in the global market. Ex-Im’s support for this transaction makes it possible to provide this capability to a valued international customer that shares our border, and, in the process, support U.S. high-technology jobs and American technology excellence in this arena.”
The Boeing Group has developed a strong relationship with Ex-Im Bank over the years and last year the export credit agency authorised approximately US$11bn of loans connected to the aerospace giant. That included a US$700m loan to MSS operator Inmarsat to help fund Boeing’s construction of its three Ka-band I-5 satellites.
Boeing is also constructing another Mexican satellite project that is seeking Ex-Im Bank support. Mexican satellite operator Satmex has applied for ECA backing to help fund both the construction and launch of Satmex 7, the all-electric satellite that Satmex ordered as part of a four satellite joint procurement contract with Asia Broadcast Satellite back in March 2012.
SatelliteFinance understands that Ex-Im Bank is currently considering the application.
Ex-Im Bank stated that Mexico is one of nine key markets for it and accounted for US$8.3bn of the bank’s worldwide credit exposure at the end of FY 2011. In FY 2012 to date, the bank has authorized approximately US$1.8bn in financing for US exports to Mexico.
