Eutelsat has announced a substantial capital raise of $1.56 billion, significantly increasing France's stake in the company to nearly 30%. This funding will be crucial in bolstering Eutelsat's plans to expand its OneWeb satellite constellation, a move to compete with the rapidly expanding Starlink network. The funding will be raised in two stages before the year's end, starting with a 716 million euro capital raise priced at 4 euros per share. This initial tranche is reserved for key shareholders including the French government, CMA CGM, Bharti Airtel, and the FSP investment fund.
A subsequent rights issue of 634 million euros will then be open to all existing investors. Eutelsat intends to use this funding to decrease debt and secure more favorable loan terms, potentially utilizing export credit agency backing. The company operates over 30 geostationary satellites and more than 650 OneWeb broadband satellites in Low Earth Orbit (LEO). However, delays in ground infrastructure and regulatory approvals might postpone the launch of fully global LEO services until the end of 2026.
The company anticipates investing up to 2.2 billion euros to launch the 440 satellites required to maintain the OneWeb constellation over the next few years. One hundred of these satellites have already been ordered from Airbus, with launches scheduled for late 2026. Furthermore, Eutelsat has allocated roughly 2 billion euros for its involvement in IRIS², a European public-private sovereign broadband constellation expected to launch around the end of the decade. “The French State is proud to contribute to strengthening Eutelsat’s capital structure and support the company at a pivotal stage of its development,” stated Eric Lombard, French Minister for the Economy, Finance and Industrial and Digital Sovereignty. “This transaction reflects our strong commitment towards a major player in satellite connectivity — a strategic sector at the heart of Europe’s digital sovereignty — while fostering remarkable potential for technological innovation and sustainable economic growth.”
Following the capital increase, the Agence des participations de l’État (APE) will hold a 29.99% stake in Eutelsat, while Bharti, CMA CGM, and FSP will hold 18.7%, 7.81%, and 5.22%, respectively. France’s contribution will exceed half of the 1.35 billion euro capital increase, totaling approximately 717 million euros. Eutelsat is also in talks with other potential investors, including the British government, a previous partner in OneWeb's rescue from bankruptcy.