Space42 gets $695.5m financing facility for next-gen geostationary satellites

• Company is well-positioned to address the growing demand for secure, reliable connectivity solutions that are vital to both defense and civil operations.
• Satellites are set to provide extensive coverage across the Middle East, Africa, Europe, and Asia, ensuring uninterrupted, multi-path connectivity critical for mission-essential applications.

The UAE-based and AI -powered SpaceTech company- Space42 – has announced a significant milestone in its expansion strategy with the signing of a $695.5 million financing facility, backed by Export Credit Agencies (ECAs), aimed at advancing the development of its next-generation geostationary satellites, Al Yah 4 and Al Yah 5.

The financial arrangement underscores the company’s commitment to enhancing critical connectivity infrastructure across multiple orbits, a move that is poised to redefine secure communication capabilities on a global scale.

The financing facility, arranged by prominent financial institutions including Credit Agricole CIB, Santander CIB, Societe Generale, and Natixis, and supported by Bpifrance Assurance Export, reflects a growing confidence among leading international banks in Space42’s strategic vision and operational expertise.

Scheduled for launch in 2027 and 2028, these satellites represent a pivotal investment in technology that promises to deliver long-term benefits for both defense and civil sectors.

From a financial perspective, the facility offers Space42 cost-effective, long-term funding that aligns seamlessly with the timelines for satellite development. The arrangement not only enhances the company’s liquidity but also ensures the financial flexibility needed to pursue further growth and innovation within a highly competitive industry.

Andrew Cole, Chief Financial Officer of Space42, emphasised the importance of this funding structure, noting that it optimises the cost of capital and supports the execution of the company’s ambitious growth agenda.

He highlighted that the Al Yah 4 and Al Yah 5 program is backed by a 17-year, $5.1 billion government contract starting in 2026, underscoring the strategic significance of this initiative.

Technologically, Al Yah 4 and Al Yah 5 embody the next frontier in satellite design, featuring a software-defined architecture with fully flexible payloads that can be reconfigured while in orbit.

The advanced capability facilitates real-time optimisation of coverage, bandwidth, and frequency allocation, thereby enhancing operational adaptability to meet evolving connectivity demands.

The satellites are set to provide extensive coverage across the Middle East, Africa, Europe, and Asia, ensuring uninterrupted, multi-path connectivity critical for mission-essential applications.

Moreover, these satellites will serve as successors to Al Yah 1 and Al Yah 2, which were launched over a decade ago. By complementing and eventually replacing these earlier models, Al Yah 4 and Al Yah 5 will elevate Space42’s service offerings, reinforcing its status as a leader in secure satellite communications.