EIB Backs Sateliot's IoT Satellite Network With Euro 30M Loan

EIB backs Sateliot’s IoT Satellite Network with euro 30M loan

EIB backs Sateliot’s IoT Satellite Network with euro 30M loan

by Erica Marchand

Paris, France (SPX) Dec 10, 2024

The European Investment Bank (EIB) has approved a euro 30 million loan to Sateliot, a Spanish space company, to support the deployment of its low Earth orbit (LEO) satellite constellation. This network of over 100 satellites will deliver global Internet of Things (IoT) connectivity to remote and underserved regions.

Based in Barcelona, Sateliot is a leader in the European “New Space” industry, which emphasizes private sector innovation in space exploration and commercialization. Its satellite network will function like mobile telecom towers in space, offering 5G narrowband IoT (5G-NB-IoT) connectivity to more than 8 million devices. This service will allow traditional mobile operators to extend their IoT network coverage to areas previously unreachable, such as rural, maritime, and other remote locations.

The EIB’s investment aims to enhance the European Union’s space connectivity capabilities while providing cost-effective IoT services. These services will support industries like agriculture, fisheries, maritime operations, environmental monitoring, and fire control, among others.

“This loan shows the EIB’s 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,” said EIB Vice-President Robert de Groot.

Sateliot’s project will also enable connectivity for critical security operations, including border monitoring, infrastructure surveillance, and reconnaissance activities. The loan is supported by InvestEU, a key EU program that seeks to mobilize substantial public and private investments to achieve EU policy objectives.

“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,” said Jaume Sanpera, CEO and Co-founder of Sateliot.

Supporting Europe’s New Space Ecosystem

The European Union has an established track record in space through programs like Galileo and Copernicus. The EIB is increasingly investing in the European “New Space” sector, with a focus on scaling up innovative companies. Initiatives such as the InnovFin Space Equity Pilot and the CASSINI program target early-stage investments in the space industry.

The EIB has become a key financier of cutting-edge space technologies, committing euro 90 million to leading European New Space companies, including Spire Global, D-Orbit, and Gomspace. The loan to Sateliot represents the EIB’s first venture debt financing for a Spanish New Space company and its first involvement in the communications segment of this industry.

Additionally, the EIB collaborates with the European Commission to provide advisory support to space companies. The Space Finance Lab and joint reports on space investment trends highlight their commitment to fostering growth in the sector. In 2024, the EIB deepened its cooperation with the European Space Agency (ESA) and the European Commission to drive progress in space technologies.

This financing is part of the EIB’s Strategic European Security Initiative (SESI), further details of which are available here.