Eutelsat - comment

Eutelsat is following up its recent €1bn BPI guaranteed financing with the bond issuance (a condition precedent). The €1.5bn issue will sit at Eutelsat Communications S.A.. As the proceeds are predominantly earmarked for OneWeb CapEx, the bonds are mostly still trading above par or even call price. Still, we are surprised to see the initial price target at 6.375%, considering the significant state involvement on display.