TECHEU VD OQTECH (IEU TI 2)

The project relates to the promoter's research and development (R&D) investments in the continuous development of its LEO satellite telecommunications technology in line with international mobile communication standards, as well as the acquisition, insurance and launch of 22 satellites and investments in hosted payloads in 14 additional satellites owned by third parties to complete its initial constellation.

The project's objectives are to deploy satellite communication infrastructures targeting underserved regions worldwide and to foster European innovation. It supports the growth of a leading European player in satellite communications, aiming to deliver narrowband Internet of Things (IoT) services and direct-to-mobile (D2M) connectivity for terrestrial 5G devices from space. The financing strengthens the EU's strategic "New Space" industry and is aligned with European space policy and autonomy goals.

The project is in line with InvestEU objective of developing the space sector. It makes an important contribution to TechEU under the "Digitalisation and technological innovation" core strategic priority.

This operation will co-finance research & development and capital investments in Luxembourg (EU). More specifically, EIB financing will be used to support the continued development and expansion of the promoter's satellite fleet for narrowband Internet of Things (IoT) and direct to mobile (D2M) communications, adding new functions and increased efficiency to the satellites and connectivity services. These investments are expected to position the Company to participate in the projected growth of space-based IoT and D2M communications in the coming years. The Company's solution targets in particular rural and remote areas not served by terrestrial networks and it is ideal for low-power, low-data IoT applications.

The operation represents EIB's second New Space loan in Luxembourg complementing prior investment across the EU space value chain. By providing much needed risk capital for the development of cutting-edge European solutions for satellite-based 5G connectivity the operation contributes to strengthening European technological leadership and strategic autonomy in this critical sector.

The EIB Venture Debt complements the new ongoing round, acting as a catalyst for new shareholder participation. Moreover, the loan will grant "equity like" risk capital at longer maturities and later repayments than current market standards for venture debt, allowing greater managerial focus on business execution thanks to a more stable capital structure.

The project would not have been carried out to the same extent by the EIB without the InvestEU support.

The investments concern research and development (R&D) activities to be carried out in existing facilities already approved for these purposes. These specific R&D activities are not mentioned explicitly in Annex I or II of the EIA Directive 2011/92/EU (amended by Directive 2014/52/EU).

The promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions.