This is the EIBs first venture debt operation with a Spanish space company and in the segment of satellite communications.
The European Investment Bank (EIB) has signed a 30m loan with Spanish company Sateliot to co- finance the rollout of its constellation of over 100 LEO (Low Earth Orbit) satellites, which will provide Internet of Things (IoT) connectivity worldwide.
The company is rolling out a network of satellites that act like mobile telecom towers in low Earth orbit,
providing 5G narrowband internet of things (5G-NB-IoT) connectivity to over eight million devices in rural, oceanic, and other remote areas. Traditional mobile operators will be able to use this service to
expand the coverage of their ground-based IoT networks to previously unserved areas.
The EIB-financed project will bolster the European Unions space connectivity and offer low-cost, IoT-based asset monitoring services for use in sectors such as agriculture, livestock management, fisheries and other maritime activities, the management of protected areas, fire control and monitoring, and environmental applications among others.
Commenting on the funding, EIB Vice-President, Robert de Groot, said: This loan shows the EIBs commitment to innovation and development in the European space sector, thereby supporting the digital transition and contributing to the European Union’s strategic autonomy in areas of space and global connectivity in the context of the EIB Strategic European Security Initiative.
The operation will help strengthen the European New Space ecosystem, speeding up the digital
transition by connecting millions of previously disconnected devices in remote areas where
ground-based IoT connections do not reach. It will also provide connectivity for security applications
such as reconnaissance and surveillance, border protection and control, and security infrastructure
monitoring. The EIB loan is guaranteed by InvestEU, the flagship EU programme to mobilise over 372bn of additional public and private sector investment to support EU policy goals from 2021 to 2027.
This EIB backing together with the support that Sateliot has already received from major investor
groups and other banks and institutions gives a huge boost to our development. This capital will be
used to move forward with the next stage of our constellation and comes in addition to the income we
will begin to receive in 2025 when the four satellites we already have in orbit enter commercial
service, added Sateliot CEO and Co-founder Jaume Sanpera.
The European Union already has historic flagship space programmes like Copernicus and Galileo that
provide Europe with autonomous space capabilities. and it is also supporting the European New
Space industry via various financing vehicles. The European Investment Fund (EIF) has launched
several initiatives such as the InnovFin Space Equity Pilot and CASSINI to back venture capital funds
investing in early-stage European space companies.
Furthermore, the EIB is currently ramping up its venture debt and scale-up financing support to highly
innovative space companies. With support from the European Commission, the EIB also offers venture debt loans to advanced-stage space companies. Since 2020, the Bank has become a key global financier of new space technologies in the European Union, including the recent financing totalling 90m for European New Space leaders like Spire Global, D-Orbit, EnduroSat, Kayrros, Gomspace and LeafSpace. The Sateliot financing, benefitting from European Commission thematic support under the InvestEU, is the latest addition to the EIB’s diversified New Space portfolio, as the first New Space company financed with venture debt in Spain, and the first in the communication segment ever.
