Eutelsat has announced the launch of a €670 million rights issue as part of its €1.5 billion capital raise to reinforce its financial structure and fund strategic ambitions.

The announcement was expected, but there were also some extra details:
· Subscription price: €1.35 per new share
· Subscription ratio: 8 new shares for 11 existing shares
· Theoretical value of the preferential subscription right: €0.79
· Trading period for preferential subscription rights: from November 26th to December 5th, 2025 inclusive
· Subscription period: from November 28th to December 9th inclusive
· Subscription commitments: c. €475 million, i.e. c.71 per cent of the total amount of the right issue, from the French Republic (the ‘French State’) via the Agence des Participations de l’Etat (APE), Bharti Space Ltd, the UK Government, CMA CGM Participations and the Fonds Stratégique de Participations (FSP) pro-rata to their shareholding.

The gross amount of approximately €670 million follows the Reserved Capital Increases of €828 million approved at the combined general meeting of September 30th and completed on November 21st,.

On June 19th, Eutelsat presented a strategic roadmap aimed at accelerating the deployment of its low Earth orbit (LEO) satellite activities and supporting the future IRIS2 constellation, while strengthening its financial flexibility by accelerating its debt reduction. In this context, Eutelsat with its consolidated subsidiaries indicated that it would raise €1.5 billion in equity capital (as presented in the communication dated July 10th, supplementing that of June 19th) through a reserved capital increases for a gross amount of €828 million at a price per share of €4.

“These Capital Increases, combined with a refinancing plan including a bond financing, export credit financings and an extension of bank debt maturities, should enable the Company to finance its medium-term plan and cover investments of approximately €4 billion over the period 2026-2029, while contributing to reducing the Company’s leverage ratio to around 2.5x at the end of the 2025–26 financial year,” said Eutelsat.

Together with the proceeds from the Reserved Capital Increases, they will be used by the Company to finance its growth and accelerate its debt reduction.

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Tags: eutelsat, funding, satellite