Natixis CIB supports Yahsat in a US$700.5m hybrid financing

16 Nov 2021

Natixis CIB supports Yahsat on US$700.5m hybrid financing for the refinancing of their existing PF debt and the financing of the construction by Airbus Defence and Space of Thuraya-4 NGS satellite.

Al Yah Satellite Communications Company P.J.S.C. (Yahsat) is a public company listed on Abu Dhabi Securities Exchange and subsidiary of Mubadala Investment Company, offering multi-mission satellite services in more than 150 countries across Europe, the Middle East, Africa, South America, Asia and Australasia.

Yahsat appointed Natixis CIB to act as Export Credit Agency (ECA) Structuring Bank, Mandated Lead Arranger (MLA), ECA Agent, Global Agent and Security Agent for an USD 700.5 million hybrid financing aimed at buying-out an existing project finance debt and financing the construction contract of the Thuraya-4 NGS satellite, along with 12 MLAs.

Thuraya-4 NGS satellite will be constructed by Airbus Defence and Space and is intended in 2024 to replace Thuraya 2, an existing dual use satellite which is reaching its end-of-life. The Thuraya-4 NGS construction contract will be funded via a long term ECA covered facility and equity. The USD 300.5 million facility is covered at 95% by Bpifrance Assurance Export (the French ECA), and associated to a reinsurance scheme from the UK Export Finance (the UK ECA), and Euler Hermes (the German ECA).

Natixis CIB Dubai’s high quality relationship with this strategic client was key to the success of this transaction. Natixis’ Coverage and Structured Export Finance worked hand in hand to accommodate Yahsat’s strict timeline for refinancing ahead of planned IPO, and the strong structuring and agency capabilities from SEF and Agency team delivered a bespoke structured solution to accommodate the ECA requirements and challenging timeline. Indeed, the transaction was closed within 3 months only, an unusual record time in Export Finance.

Through our leading roles, Natixis CIB continued to position itself as a valuable and significant relationship bank to Yahsat and Mubadala and a partner of Airbus Defence and Space, this transaction being the second successful closing in 2021 with this strategic client of Natixis.

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