Spacecom Obtains Loans from Canada's EDC, US Ex-Im Bank and Israel Aerospace Industries for AMOS-6 Communications Satellite

 10 November 2013

Spacecom has signed agreements with a consortium of banks and the AMOS-6 satellite manufacturer for a loan just over US $ 293 million, to finance the construction, launch, insurance and financing costs related to the AMOS-6 communications satellite. The consortium is led by Export Development Canada (EDC) which will loan up to US $140 million; Export-Import Bank of the United States (Ex-Im) which will loan up to US $106 million and Israel Aerospace Industries (IAI) with a loan up to US $47 million. IAI is responsible for manufacturing and preparing for launch of the satellite whose launch date is scheduled for 2015 to the AMOS 4°W 'hot spot,' current home to the AMOS-2 and AMOS-3. 

The withdrawals on this loan agreement will be executed during the satellite's construction period. Furthermore, the agreement states that interest will be based on the current annual rate of Commercial Interest Reference Rate (CIRR) and an annual spread that currently is 1.98 percent. The loan will be paid back over 8.5 years with 34 quarterly payments, with Spacecom keeping the option of early repayment at agreed upon terms.   

"Creating the loan framework with the leading export banks of the USA and Canada is recognition that Spacecom's AMOS-6 is an important project for the satellite industry," David Pollack, president and CEO of Spacecom commented. "AMOS-6 is an important building block of our forward looking business strategy and growth. We are excited to grow further in our program toward becoming a global satellite operator. We thank both EDC and EXIM for their trust and support" 

AMOS-6 will be larger and more powerful than AMOS-2 and AMOS-3 combined. With a 16 year scheduled life span, the satellite will expand territories under current service by adding Western Europe and multi-beam coverage over parts of Africa to existing Central and Eastern Europe and Middle East coverage.