UAE state-owned satellite operator Yahsat is already considering plans for a third satellite as it aspires to become a medium-sized operator in the region, SatelliteFinance has learnt.
The group launched its first satellite, Y1A, in April 2011. It…
UAE state-owned satellite operator Yahsat is already considering plans for a third satellite as it aspires to become a medium-sized operator in the region, SatelliteFinance has learnt.
The group launched its first satellite, Y1A, in April 2011. It expects to place its second, Y1B, into orbit in Q1 2012, after a launch late this year was delayed because of the Proton rocket failure in August.
However, Yahsat is already looking for further growth opportunities, deputy CEO Tareq Al Hosani told SatelliteFinance.
“We aim to become a medium-sized operator in the near future,” he said, adding that the company is looking to operate around 3-5 satellites in the region to achieve “critical mass”.
Yahsat is owned by Mubabala, an investment arm of the UAE government.
Back in 2008, the group announced it had secured US$1.6bn in financing for its first two satellites, with BNP Paribas acting as financial adviser. Some US$1.2bn of this was financed through a 14-year non-recourse loan, with the remaining coming from Mubabala.
Some 14 undisclosed banks participated in the external financing, which was split into a US$1.014bn term loan, US$100m of stand-by facilities and US$80m in a debt service reserve letter of credit. The margin on the loan started at 1.1% and increased to 1.4% in later years, according to Yahsat.
The two communications satellites were manufactured by Astrium and Thales Alenia Space. Arianespace launched Y1A, while International Launch Services is gearing up to loft Y2A.
Y1A and Y2A were also insured under what Yahsat claims was the world’s first ever Shariah compliant space insurance policy.
This insurance coverage was provided by UAE-based firms Methaq and ElseCo, while UK-based Willis designed the takaful insurance coverage.
But Yahsat will need to raise additional financing if it is to launch further satellites.
Tareq Al Hosani said he was confident his company will become a leader in the FSS market for the Middle East region, where it competes with regional operator Arabsat.
He said: “We have a strong position to do this. Our success drivers include having a strong investor and a good regulatory environment.”
The company also expects to build on a JV announced with satellite operator SES in April 2009 for the creation of DTH platform Yahlive. This unit currently offers DTH satellite services through Y1A to free-to-air and payTV broadcasters in the Middle East, North Africa and South West Asia regions.
“Before the end of the year we will have more concrete plans,” said Tareq Al Hosani.
He added that Yahsat was also talking to different potential partners to help support its growth.