Ex-Im Approves $461 million to Finance Export of U.S. Satellites to Hong Kong
November 19, 2012
(Ex-Im Bank)
Washington, D.C. – In a decision that will
support thousands of high-tech jobs in the
U.S., the board of the Export-Import Bank of
the United States (Ex-Im Bank) has authorized
two transactions aggregating $461 million to
underwrite the export of American-made
satellites to Hong Kong.
The pair of transactions will support
approximately 3,700 U.S. jobs, according to
Bank estimates derived from Departments of
Commerce and Labor data and methodology.
“We are excited to play such a key role in two
dynamic transactions that will support several
thousand high-paying U.S. jobs in the satellite
and aeronautics industries,” said Ex-Im Bank
Chairman and President Fred P. Hochberg. “These
products reveal the technological ingenuity and
innovation of American companies and will
benefit millions of people the world over as we
orient ourselves more and more to the future.”
Asia Broadcast Satellite (ABS) of Hong Kong
will deploy the satellites to upgrade and
expand its fleet, which offers coverage to 80
percent of the world’s population and targets
emerging markets in Africa, Asia, the Middle
East, and Russia.
“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,” said Tom Choi, chief
executive officer of ABS. “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.”
In the first transaction, the Bank authorized a
$171.29 million direct loan to ABS to finance
the purchase of a FS1300, C/Ka/Ku-band
geostationary satellite from Space
Systems/Loral Inc. (SS/L) and insurance from
Aon. The satellite is scheduled to launch in
2013.
SS/L, a Palo Alto, Calif.-based provider of
satellites and space systems, has manufactured
more than 250 satellites since 1960. The
satellites have delivered an excess of 1,900
years of on-orbit service.
“Export-Import Bank financing helps make U.S.
manufacturers more competitive and keeps our
space industry strong,” said John Celli,
president of Space Systems/Loral. “Our work on
the satellite for ABS keeps hundreds of
engineers, technicians and managers employed
here in Palo Alto and many hundreds more at
suppliers across the U.S.”
Additionally, the Bank authorized a separate
$289.71 million direct loan to ABS to
facilitate the purchase of two 702SP C- and
Ku-band geostationary satellites from Boeing
Satellite Systems International (Boeing),
insurance from Aon, technical support, and the
launch of both of the satellites with Space
Exploration Technologies (SpaceX) Falcon 9. The
transaction will finance the first two of
Boeing’s all-electric-propulsion commercial
satellites and the first Ex-Im Bank-backed
SpaceX launch. The two satellites are planned
to launch in 2015 from Cape Canaveral, Fla.
“The Bank's support of this important satellite
operator, one of two launch customers, finds it
again at the forefront of helping fulfill a
global opportunity with an advanced-technology,
American-made product,” said Craig Cooning,
chief executive officer of Boeing Satellite
Systems International. “Our all-electric
propulsion means lighter launch weight, which
translates into more payload capability at a
lower cost in orbit. It ultimately means we can
offer customers more and capture sales that
will support hundreds of high-tech American
jobs.”
Founded in 2002 and headquartered in Hawthorne,
Calif., SpaceX designs, manufactures and
launches rockets and spacecraft. It is the
first private company to build, launch, and
dock spacecraft at the International Space
Station, a mission previously accomplished only
by government space entities.
“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,” said Gwynne Shotwell, SpaceX president.
“SpaceX is rapidly winning back market share in
a commercial field once dominated by the U.S.
The support of Ex-Im is great for our
customers, our jobs, and our country”
HSBC Hong Kong and New York Project &
Export Finance teams acted as lead financial
advisor to ABS throughout the Ex-Im Bank
application and due diligence processes.
In FY 2012, Ex-Im Bank authorized approximately
$1.4 billion in satellite transactions.
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