Eutelsat announces $1.56bn capital increase

Eutelsat has announced a Contemplated capital increase of $1.56 bn, anchored by key reference shareholders, to secure the execution of long-term strategic vision.

Eutelsat is one of only two global operators with active commercial LEO (Low Earth Orbit) fleets and with a clear differentiation, being the only one exclusively focused on the B2B and B2G markets. While the global satellite connectivity market is expected to increase by 12% per annum between 2025 and 2029, the global LEO B2B connectivity market, valued at over $2.1bn in 2025, is expected to grow at a 28% CAGR through 2029 and multiply its current size fivefold over the next eight years, offering significant short to long-term growth potential.

Eutelsat, the only GEO-LEO operator, and the only European operator with a fully operational LEO network, uniquely positioned to capture the momentum in the connectivity market.

Eutelsat is contemplating raising $1.56bn of capital by way of (i) a reserved capital increase of €716m at a price per share of €4 corresponding to a +32% premium to the 30-day-VWAP of the shares as computed on Euronext Paris (the “Reserved Capital Increase”), which would be subscribed by the French State via the Agence des Participations de l’Etat (“APE”), Bharti Space Limited, CMA CGM, and Le Fonds Stratégique de Participations (“FSP”), and (ii) a rights issue of €634m (the “Rights Issue”), which would be subscribed for their rights by the above investors.

Prior to the approval of the Reserved Capital Increase by Eutelsat’s shareholders, the APE will acquire the shares of the Company currently held by Bpifrance Participations, at a price per share equal to the subscription price of the Reserved Capital Increase. Consequently, the Board member representing Bpifrance Participations would be replaced by a representative of the French State.

This capital increase would represent a pivotal step in Eutelsat’s strategic and financing roadmap, enabling the execution of its strategic vision. Coupled with a dedicated debt refinancing plan, this capital increase will reinforce the Company’s financial flexibility by accelerating its deleveraging and support investment in its existing Low Earth Orbit (LEO) capabilities and the future IRIS² constellation. On the back of the forthcoming capital increase, Eutelsat would reduce its leverage to c. 2.5x⁴ by year-end FY’2025-26, and would be well placed to tap debt capital markets, raise export credit financing and extend its bank debt maturities in order to fully cover the financing needs of its medium-term plan.

Jean-François Fallacher, CEO of Eutelsat Group, said: “Eutelsat enters a new chapter, centered on the deployment of LEO, a major innovative and technological revolution for the Satellite industry. Thanks to its differentiated GEO-LEO positioning and global coverage, Eutelsat is ready to become a central player in the development of the European sovereign space of tomorrow. I welcome the contemplated capital increase which will give Eutelsat the requisite financing to implement its strategic roadmap. I am grateful for the support of the French State and the ongoing commitment of our other anchor shareholders – Bharti, CMA CGM and FSP and thank them for their confidence.”

Eric Lombard, Minister for the Economy, Finance and Industrial and Digital Sovereignty, stated: “The French State is proud to contribute to strengthening Eutelsat’s capital structure and support the company at pivotal stage of its development. 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.
Through this transaction, France reaffirms its determination to build, together with the company and its European partners, a competitive, resilient, and sovereign space industry, particularly around the IRIS² programme, which is a key pillar of our strategic autonomy.

“We are convinced that the company’s solid fundamentals — its recognised expertise in geostationary orbit, its innovative solutions in low Earth orbit, its committed team, and its ambitious vision — are the foundations for lasting success. Eutelsat is opening a new chapter in its history, and the State will be fully present to help write it alongside the company.”