Eutelsat Secures €1 Billion Financing for OneWeb Satellite Procurement

Summary

Eutelsat has secured approximately €1 billion ($1.2 billion) in export credit financing backed by the French government to fund the procurement of its next-generation OneWeb low Earth orbit (LEO) satellites. The financing supports a manufacturing contract with Airbus for 340 satellites.

PARIS, Feb 11 — Eutelsat said on Wednesday it has secured around €1 billion in export credit financing to fund the procurement of its OneWeb second-generation (Gen 2) satellite constellation.

The financing package is backed by France’s export credit agency through Bpifrance and will support Eutelsat’s contract with Airbus Defence and Space to manufacture 340 new LEO satellites.

The deal strengthens funding for Eutelsat’s satellite expansion plans as competition intensifies in the fast-growing broadband-from-space market.

Funding Structure and Purpose

The export credit financing provides long-term funding support for the satellite procurement phase of the OneWeb Gen 2 program. Export credit arrangements typically offer government-backed guarantees that reduce borrowing costs for large industrial contracts.

Eutelsat said the financing remains subject to the completion of certain conditions, including the planned issuance of bonds in the coming weeks.

The new Gen 2 satellites are intended to expand and enhance the capabilities of the existing OneWeb constellation, which currently consists of 648 first-generation satellites providing connectivity services globally.

Airbus to Manufacture 340 Satellites

Under the existing agreement, Airbus will manufacture 340 next-generation satellites at its facility in Toulouse, France.

Compared with the first-generation OneWeb fleet, the Gen 2 satellites are expected to deliver:

• Higher throughput and greater data capacity
• Enhanced flexibility in bandwidth management
• Improved network performance for enterprise and government customers

Eutelsat’s OneWeb network primarily serves enterprise, maritime, aviation and government clients, positioning it differently from consumer-focused satellite broadband services.

Competitive Landscape

The financing comes as satellite operators expand LEO constellations to meet rising demand for low-latency connectivity.

Eutelsat competes with:

• SpaceX’s Starlink network
• Amazon’s Project Kuiper

Starlink has already deployed thousands of satellites globally, while Amazon’s Kuiper program remains in its deployment phase.

Eutelsat has positioned OneWeb as a strategic European satellite network and is also involved in the European Union’s IRIS² secure connectivity initiative.

Why This Matters

• European strategic autonomy: The French state-backed financing highlights the political and industrial importance of maintaining European-controlled satellite infrastructure.
• Capital intensity of space broadband: LEO constellations require billions in upfront investment, making access to structured financing critical for operators.
• Competitive positioning: With financing secured, Eutelsat can move forward with Gen 2 production as competition with Starlink and other constellations intensifies.
• Balance sheet stability: Export credit support reduces near-term funding pressure and lowers borrowing costs compared with purely private financing.

FAQs

Q1. What is export credit financing?

It is government-backed financial support that helps companies fund large export contracts, often at favorable interest rates.

Q2. How many satellites are included in the new order?

Airbus will manufacture 340 Gen 2 satellites for Eutelsat.

Q3. What is OneWeb Gen 2?

It is the next phase of Eutelsat’s low Earth orbit satellite network, designed to increase capacity and improve service performance.

Q4. How does OneWeb differ from Starlink?

OneWeb primarily targets enterprise, aviation, maritime and government customers, while Starlink has a large consumer broadband focus.

Q5. Is the financing fully completed?

The package has been secured but remains subject to certain conditions, including a planned bond issuance.