European satellite operator Eutelsat has announced that it will raise €1.5 billion to refinance existing debt and add cash to the company’s balance sheet.
In June 2025, Eutelsat reported net debt of just over €2.6 billion, up €82.2 million year-on-year, with a net debt-to-EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) ratio of 3.88×. At the same time, the company had committed more than €2 billion to procure 440 new satellites to replenish and expand its OneWeb broadband constellation.
Efforts to directly tackle its debt began in 2025 with a €1.5 billion capital raise, completed by the end of the year and backed by investors including the French and UK governments. In early February 2026, the company also secured €1 billion in French government-backed financing to support the expansion of the OneWeb constellation.
On 23 February, Eutelsat launched its latest effort to address its debt burden with a €1.5 billion offering of euro-denominated senior bonds due in 2031 and 2033. While the amount is identical to the €1.5 billion capital raise from late 2025, this bond offering represents entirely new debt rather than equity. In practical terms, Eutelsat is borrowing this fresh capital from investors to pay off older, more expensive loans, extending its repayment timeline into the next decade.
Specifically, the company explained that the €1.5 billion raise would be used to redeem €600 million of 2.25% notes due in 2027 and €600 million of 9.750% notes due in 2029. The proceeds will also be used to fully repay and terminate a loan entered into in June 2021, cover fees and expenses related to the new bonds, and increase cash reserves to support the company’s operations.
While Eutelsat appears to be making progress in addressing its finances, the company has also committed €2 billion to the European Union’s IRIS2 secure communications constellation. The European Commission selected the SpaceRISE consortium to design, deploy, and operate the system in November 2024. The consortium comprises Eutelsat, SES, and Hispasat. The EU has committed to covering around 60% of the projected €10.6 billion cost, with the consortium partners responsible for the remaining 40%.
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