Space Projects Get Big Boost from U.S. Export Credit Agency
The U.S. export credit agency’s pipeline for space-related projects has surged to $9.5 billion, more than doubling in the past year.
During a Paris panel at World Satellite Business Week, Judith Pryor shared that Ex-Im is currently underwriting $800 million in space transactions. Ex-Im, providing financial support like loans and debt guarantees to U.S. exporters, has been busy since it reopened in 2019 after a four-year closure due to congressional debates.
Projects seeking funds include various satellite ventures, such as Earth observation and internet constellations in different orbits.
We think it’s cool how space projects are gaining momentum.
Last year, Ex-Im’s board approved a domestic finance initiative to help companies set up factories in the U.S. if part of their output is exported. So far, they’ve backed four projects, though Pryor didn’t specify which ones. This policy can aid in building satellite antennas distributed worldwide.
“It almost allows us to take a little bit higher risk,” Pryor said, explaining that this new angle helps them finance factories and constellation plans. She mentioned Ex-Im is prepared to lend up to $100 billion if there are solid ideas with strong management teams and agreements in place, regardless of sector, size, or orbit.
Export credit agencies like Ex-Im provide favorable financing terms to boost economic growth, especially when markets struggle. Yet, Pryor emphasized that projects must be credible, as Ex-Im closely examines the details.
In contrast, the French export credit agency BPI has reduced its involvement in space due to past financial issues with NGSO constellation projects like Globalstar and Iridium. However, BPI is open to reconsidering NGSO support, though they see these projects as riskier than traditional geostationary programs.
Telesat had initially planned to get BPI’s backing for its Lightspeed NGSO network, but supply chain delays and other problems led them to switch manufacturers. Currently, BPI manages nearly two billion euros in space projects, with half a billion in the pipeline. Bedat expects the new Ariane 6 rocket will boost industry deals.
Eduard Danielyan from the IFC mentioned that last year, the IFC facilitated about $50 billion in space transactions. The IFC supports emerging markets with tools like long-term debt and project financing, and it recently increased its space involvement due to the industry’s benefits for developing countries. Danielyan added that the IFC is exploring ways to back distribution channels and ground infrastructure, starting with communications satellites.
