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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