NewSat, an Australian satellite manufacturer, has reached loan agreements with Coface and the Export-Import Bank of the United States (US Exim).

US Exim will directly lend US$280mn to the project, while its French counterpart Coface will insure US$100mn of the total.
The finance will fully fund the construction and launch of the Jabiru-1 satellite, for completion in late 2014.

As a condition of receiving the direct loans, NewSat has been told that it must raise US$200mn in equity, which it plans to do through an issuance of new shares. The overall US$380mn package will be priced at 2.5%, with a tenor of 8.5 years, payable once Jabiru-1 is in orbit.

US Exim became involved after NewSat selected Lockheed Martin, an American contractor, as a supplier. It is also working with French launch service provider Arianespace, which explains the involvement of Coface.