Website CIB offers Yahsat a hybrid financing of US$700.5 million.

In a remarkable achievement, CIB Dubai has played a pivotal role in the success of a significant transaction with Yahsat, marking the second successful closing between the two entities this year. This transaction concerns the construction of the Thuraya-4 New Generation Satellite (Thuraya-4 NGS), scheduled for construction by Airbus Defence and Space in 2024.

The construction contract for Thuraya-4 NGS will be funded via a long-term Export Credit Agency (ECA) covered facility and equity. The total cost of the USD 300.5 million facility is covered at 95% by Bpifrance Assurance Export, with the remaining 5% covered by the export credit insurer Euler Hermes.

The UK Export Finance (the UK ECA) and Euler Hermes (the German ECA) are associated with the reinsurance scheme for the Thuraya-4 NGS facility. The unique structured solution devised by CIB Dubai's Coverage and Structured Export Finance teams accommodated Yahsat's strict timeline for refinancing ahead of their planned Initial Public Offering (IPO).

The ECA requirements and challenging timeline were met with this bespoke structured solution, demonstrating CIB Dubai's commitment to delivering exceptional service. The transaction was closed within an unusual record time of 3 months in Export Finance, underscoring CIB Dubai's efficiency and expertise.

Thuraya-4 NGS is set to replace the existing dual-use satellite Thuraya 2, which is nearing its end-of-life. This new satellite will undoubtedly contribute to Yahsat's ongoing mission to provide advanced satellite solutions for communications in the Middle East, Africa, and Asia.

CIB Dubai's involvement in this transaction further solidifies their standing as a reliable partner for strategic clients like Yahsat, and their dedication to facilitating complex financial transactions in the satellite industry.