Eutelsat has completed a €5 billion refinancing package, including the issuance of a new €1.5 billion bond, as the satellite operator seeks to lower borrowing costs and fund the modernization of its OneWeb satellite constellation through 2029.
The bond issuance, finalized last week, forms the final step in a broader financial restructuring aimed at reshaping the company’s capital structure. The new unsecured senior notes were issued in two tranches: €850 million with a 5.75% coupon maturing in 2031 and €650 million with a 6.25% interest rate due in 2033.
Proceeds from the bond will be used to refinance existing liabilities, including debt held by subsidiary Eutelsat SA that carried interest rates approaching 10%. The refinancing is expected to reduce the group’s overall debt costs while simplifying its financial structure.
The company said the restructuring also removes structural constraints created by debt previously held at the subsidiary level, which had limited capital flows within the group. By consolidating its financing framework, Eutelsat aims to improve access to global debt markets.
The refinancing supports Eutelsat’s planned €4 billion investment program between 2026 and 2029, focused on upgrading its satellite infrastructure and replacing aging spacecraft with more advanced technology.
A key component of the program is the continued development of the OneWeb low Earth orbit (LEO) constellation. Earlier financing steps included a capital increase completed in late 2025, new credit facilities secured in November 2025 and €1 billion in export credit financing finalized in February 2026.
The export credit funding will support the procurement of 440 new LEO satellites from Airbus Defence and Space as part of the constellation’s next-generation upgrade.
With the refinancing process now complete, Eutelsat is expected to focus on implementing its satellite infrastructure roadmap as it seeks to strengthen its position in the global satellite communications market.
