Eutelsat - comment

Following its recent unfunded order of 340 LEO satellites from Airbus, Eutelsat Communications SA, the topco, has received an ECA Export Credit facility of €975m, sitting pari passu at that entity. This facility is guaranteed by the French state via BPI France and sits outside the bonds’ restricted group, but does not prime them on the OneWeb assets. "Its disbursement remains subject to several conditions precedent, including a bond issuance at Eutelsat Communications”, which we expect to be granted on similar terms, if not guaranteed. Despite the increasing leverage, we consider this positive for the bonds, in that the company’s ambitious strategy now receives the required funding.