SES ADVANCED HYBRID SATELLITE

The project concerns the design, the purchase and the launch of three satellites in order to support the company's transition from traditional TV broadcasting to more innovative IP based streaming services. Two satellites will be located at the orbital slot 19.2 degrees East and one at 57 degrees East. The satellites are very important for the promoter's business as they cover key central European markets (including Germany, France, Austria, Switzerland and Spain) as well as Africa and Middle East. Through these new satellites, the Direct to Home TV with latest HD quality will be strengthened and more innovative TV services such as IP multicast streaming to residential users and terrestrial 5G networks including broadband data services are added.

The project will secure key strategic orbital slots (19.2 and 57 degrees East) and strengthen the European leadership in the geostationary space technology sector, through the investment in next generation satellite solutions.

By investing in the development, launch and operation in a next generation satellite solution, the project will secure key strategic orbital slots (19.2E and 57E) in space and thus strengthen the European leadership in the geostationary space technology sector.

The project is eligible for financing under Article 309 point c), common interest, and the Bank's PPG ''IDHC'' (contributing to Space related infrastructures and services) and is also contributing to reaching the targets of the EU's space programme 2021-2027. Furthermore, the project will be instrumental to securing Europe's independence in the area of autonomous access to space-based data traffic for commercial and governmental applications, as aimed by the European Space Agency to strengthen the European space industry.

Finally, the project will support the Bank's activities related to the Strategic European Security Initiative.

A market failure has led to underinvestment in rural broadband networks, which is common due to the very high costs to roll out such terrestrial broadband networks and the high-risk profile of the revenue stream of such networks. The rural data connectivity markets addressed by the project are mainly in areas where such market failure exists, as terrestrial broadband networks will not be rolled out there due to lack of financial viability (population density too low). Furthermore, the project addresses the market failure leading to inefficient distribution of goods (media content).

EIB's loan provides a highly flexible financial product to allow the client to finance its planned investments in new satellites. Furthermore, by allowing the client to diversify its financing sources in the current challenging market environment, the EIB sends the market a strong message of support for the counterparty and the project.

Investments for the purchase and the deployment of (broadband) satellite services do not fall under the Annexes of Directive 2014/52/EU amending the Environmental Impact Assessment (EIA) Directive 2011/92/EU. Therefore no particular negative residual impact on the environment is expected.

The promoter is a private company operating in the space sector, which is exempted from public procurement requirements.