French institutions fund satellite launch

US broadband satellite network provider Hughes Network Systems has signed a US$115mn facility with French banks BNP Paribas and Société Générale.

The loan will finance the launch of a next generation high-throughput satellite, named Jupiter, in the first half of 2012.

The loan pays a fixed 5.13% over 8.5 years after the satellite’s launch.

France’s export credit agency Coface is backing the loan, which comes five months after the ECA backed a similar, although much more expensive, US$1.8bn satellite project for Thales Alenia Space.

Funding under the facility is still subject to closing conditions which are expected by Hughes to be met soon.

Hughes has also contracted French company Arianespace to launch the satellite.

“I am very pleased to have entered into this Coface-backed facility with attractive terms that include a fixed interest and long tenor. I would like to thank all of our colleagues who have made this happen, including Coface, BNP Paribas, Société Générale and Arianespace,” comments Pradman Kaul, chairman and chief executive officer of Hughes.