EXIM Approves $80.7 Million to Support SpaceX Launch Services and U.S.-Brokered Insurance for Hispasat Satellite
June 21, 2021
(Ex-Im Bank)
First EXIM Satellite-related Deal Since 2015, Counters Foreign Competition
WASHINGTON – The Board of Directors of the Export-Import Bank of the United
States (EXIM) unanimously approved $80.7 million in EXIM financing to support
launch services by SpaceX and also U.S.-brokered launch and initial in-orbit
insurance for Hispasat Canarias S.L.U., a subsidiary of Hispasat, S.A., of
Spain. These EXIM-supported services will help Hispasat to deploy a new
satellite, Amazonas Nexus. The EXIM financing, which may take the form of a
direct loan or a loan guarantee, is estimated to support approximately 500
American jobs in California, Florida, Texas, and Virginia.
The transaction is the first EXIM financing of a satellite-related export since
2015, before EXIM was forced to pause board-approved transactions for several
years due to the lack of a board quorum. Today’s announcement marks an
important step in EXIM’s re-emergence following the agency’s historic
seven-year reauthorization by Congress in 2019. EXIM’s support is needed for
this transaction to provide long-term financing for Hispasat that was
unavailable from commercial lenders. EXIM’s support also counters potential
export credit agency support for a French launch-services competitor,
Arianespace.
“This transaction signals the return of EXIM in support of the U.S.
satellite-related industry. The need for export credit agency support is
well-established in this industry, and the availability of EXIM’s financing
enables SpaceX and other U.S. exporters to remain competitive,” said EXIM
Acting First Vice President and Chairman James C. Cruse.
“It is exciting to be supporting SpaceX as they launch this new satellite for
Hispasat. This is precisely where EXIM plays a critical role, supporting
high-tech U.S. companies and their workers in an intensively competitive
environment. This transaction is a fine example of how EXIM is available for
U.S. exporters, especially when the decisions of international buyers hinge upon
the availability of government-provided export credit,” said EXIM Board Member
Judith D. Pryor.
“During the present contraction in financial markets, EXIM continues to carry
out its mission by providing financing when private lenders lack the capacity to
do so,” said EXIM Board Member and former Congressman Spencer Bachus. “In
addition, one very positive outcome of the action we took today will be the
preservation of approximately 500 U.S.-based jobs.”
The high-throughput satellite, being built by Thales Alenia Space of France,
will be launched on a SpaceX Falcon 9 rocket. The satellite will replace
Hispasat’s Amazonas-2 satellite, which will reach the end of its 15-year life
in 2024. The satellite will offer an increased capacity for new business and
enable Hispasat to expand its customer base and enter new markets by supplying
high-capacity mobile services. The satellite construction contract was awarded
in late 2019 and is being financed by Bpifrance.
Space Exploration Technologies Corporation (SpaceX), headquartered in Hawthorne,
California, designs and manufactures rockets and provides satellite launch
services. SpaceX provides a route to orbit for companies deploying satellites
and also takes supplies to the International Space Station. The company has
approximately 8,000 employees.
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