TECHEU VD PAS (IEU GT3)

The project involves the development of an innovative reusable small lift orbital launcher aimed to lift small payloads for commercial, civil and security space missions to all relevant orbits including Sun-Synchronous Orbit (SSO), Geostationary Earth Orbit (GEO), Low Earth Orbit (LEO), equatorial, mid-inclination, polar and lunar orbits. The project includes development of the launcher's structure, recovery system, engines, avionics and other systems, as well as investments in launch zone equipment.

The aim is to support the development of new small rocket technology and related launch system. The proposed operation aligns with most of EIB's strategic priorities, including TechEU. It provides direct support to digitalisation and technological innovation, security and defence, and climate action and environmental sustainability, by funding disruptive European launcher technology and infrastructures, crucial to autonomously launch satellites for mission-critical commercial, civilian, and military monitoring activities for the EU, and do so in a more climate-sustainable manner, thanks to the launcher's reusability. Additionally, the EIB venture debt financing supports the capital markets union by filling a venture funding gap in EU.

The project is in line with the InvestEU objectives of developing the European space sector. The promoter is a Spanish micro-launcher company, developing small rockets for dedicated transport of small satellites into low and medium earth orbits. In 2023, it launched Europe's first privately funded suborbital micro-launcher. It is now developing a larger micro launcher for commercial orbital launches into space, most of them reusable. The EIB project will co-finance research & development in Spain to develop the new rocket, and capital expenditures in French Guiana to develop a new launch space port into equatorial orbits.

The proposed operation makes an important contribution to EIB's core strategic priority "Digitalisation and Technological Innovation" (TechEU) as well as the horizontal objectives of Security and Defence, Cohesion and Social Development, and Climate Action and Environmental Sustainability. It supports disruptive European launcher technology and infrastructure, crucial to autonomously launch satellites for mission-critical commercial, civilian, and military monitoring activities for the EU, and moreover does so in a more environmentally sustainable manner.

Finally, the EIB Venture Debt financing supports the Capital Markets Union by filling a venture funding gap in EU, helping the company in scaling towards profitability and become a major European technology player in the global stage. The loan will grant 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 EIB support will signal an EU stamp of approval to the market, requiring further crowding-in of new capital to unlock the full EIB loan. The project would not be carried out by the EIB without the InvestEU support.

The project activities are not explicitly mentioned in Annexes I or II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU. The Research and Development activities and the installation of equipment included in the scope of the project will be performed in existing premises already approved for the same purposes and are not expected to have any relevant environmental and social impact. The EIB will review these assumptions during the project appraisal and any other relevant environmental and social impact related to the project.

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