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PARIS - Satellite communications provider Eutelsat (Paris:ETL) (LSE:ETL) announced Tuesday the launch of a €670 million rights issue as part of its previously announced €1.5 billion capital raising plan to strengthen its financial structure and fund strategic growth initiatives.
The rights issue follows €828 million in reserved capital increases completed on November 21, 2025. The combined capital raises will help finance Eutelsat’s growth plans and accelerate debt reduction.
Under the terms of the rights issue, shareholders will receive one preferential subscription right per share, with 11 rights entitling holders to subscribe for 8 new shares at €1.35 per share. The subscription period runs from November 28 to December 9, 2025.
The company has secured subscription commitments covering approximately 71% of the total amount from major shareholders including the French government (29.65%), Bharti Space Ltd (17.88%), the UK government (10.89%), CMA CGM Participations (7.46%), and Fonds Stratégique de Participations (4.99%).
Eutelsat plans to use the proceeds to finance its medium-term growth strategy, which includes accelerating the deployment of its low Earth orbit satellite activities and supporting the future IRIS2 constellation. The capital raises, combined with a refinancing plan, should enable the company to finance approximately €4 billion in investments over 2026-2029 while reducing its leverage ratio to around 2.5x by the end of the 2025-26 financial year.
The company is also refinancing its bank and bond debt, having signed agreements for a €500 million revolving credit facility and a €400 million term loan with three-year maturities and two one-year extensions.
Settlement and delivery of the new shares is expected on December 16, 2025, with trading on Euronext Paris beginning the same day and on the London Stock Exchange on December 17, 2025.
Eutelsat, formed through the combination of Eutelsat and OneWeb in 2023, operates a fleet of 34 geostationary satellites and a low Earth orbit constellation of more than 600 satellites.
This article is based on a press release statement from Eutelsat.
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