Export Development Canada is backing Spanish operator Hispasat’s new satellite to serve Europe and the Americas with a €123m (US$159m) loan.
The export credit agency said the satellite project fits its criteria because the spacecraft is being built…
Export Development Canada is backing Spanish operator Hispasat’s new satellite to serve Europe and the Americas with a €123m (US$159m) loan.
The export credit agency said the satellite project fits its criteria because the spacecraft is being built by US-based Space Systems Loral, which was bought by Canada’s MDA two years ago.
“EDC’s focus was to provide Hispasat with competitive financing critical to building a stronger relationship with MDA and SSL, ultimately encouraging growth in Canada’s high-tech sector,” said EDC VP for financing and investments Carl Burlock.
Hispasat 1F will be the third satellite that SSL has made for the Spanish operator, whose talks to buy a controlling stake in its Israeli counterpart Spacecom recently hit a roadblock after months of negotiations.
The bird will be launched to 30W in 2016 to give Hispasat additional Ku-band capacity in the Andean region, and the growing Brazil market, while expanding its transatlantic services and adding Ka-band coverage for broadband in Europe.
Hispasat’s loan covers the initial financing needs of the project, and further funding will be required once it has picked a launch service provider and for other capex needs. This will come from either new financing facilities or cash reserves, a spokeswoman said. It has yet to secure insurance for the new satellite.
The group has a foothold in Latin America through its Hispamar joint venture with Brazilian telco Oi, but it has also been looking to expand further through international M&A.
It revealed in April that it was in talks to take control of Spacecom from Eurocom, which is Israeli tycoon Shaul Elovitch’s private holding company.
However, in June the CFO of Abertis, which holds 57% of Hispasat, said there were “fundamental disagreements” that stood in the way of that deal.
Local reports have since speculated that the transaction has collapsed entirely, although Abertis told SatelliteFinance today that there has been no update since its last comments on the matter in June.
French satellite operator Eutelsat owns a 33.69% chunk of Hispasat, while the Spanish government owns the rest through state-owned groups SEPI and CDTI, which have stakes of 7.41% and 1.85%, respectively.
