Eutelsat's Strategic Financing Move: €828 Million Capital Increase

Eutelsat Communications has announced its Board of Directors' approval for a €828 million capital increase through a reserved process. This step is part of its larger financing strategy to bolster financial flexibility and support investments in Low Earth Orbit (LEO) capabilities and the IRIS² constellation. The French State, Bharti Space Limited, CMA CGM Participations, and other entities will subscribe to this increase at €4.00 per share.

The capital increase will alter ownership stakes, with the French State holding 29.65% of voting rights. Eutelsat will also conduct a further €672 million rights issue, backed by commitments covering over 70% of the issue. The strategy aims to achieve a Net Debt/EBITDA ratio of about 2.5x by the end of FY 2025-26, enhancing Eutelsat's position in debt capital markets.