The European Investment Bank (EIB) is setting up Space TechEU, its first dedicated financing programme for the European space sector, as part of its TechEU initiative. The space financing initiative was announced earlier today at the European Space Agency`s triannual Council of Ministers meeting in Bremen.
The new lending programme is expected to include €500 million EIB financing to support companies across the space value chain, from upstream to downstream, and mobilise an estimated €1.4 billion of new investment in cooperation with commercial banks. It will be focused in particular on supporting SMEs and mid-caps in the sector, who often struggle the most to obtain bank financing.
The EIB will provide both credit lines and guarantees to EU banking partners. In a strategic partnership with the EIB, the European Space Agency (ESA) will provide sector understanding and technical expertise to commercial banks who join the programme.
“Through this new dedicated space finance programme, we will give banks across the EU the tools and the confidence to increase their financing for space companies in Europe across the entire space value chain”, EIB Vice President Robert de Groot said. “We are supporting the development of a strong, globally competitive European space industry – one that ensures more autonomy and contributes to our prosperity and security.”
The initiative is a concrete result of the tripartite collaboration partnership
During the formal launch event, ESA Director General Josef Aschbacher, European Commissioner Andrius Kubilius, as well as representatives of three large European commercial banks underlined the importance of this initiative to accelerate space investment through dedicated financing in the sector.
The EIB and ESA are joining forces to improve access to finance for businesses, particularly SMEs and midcaps in space and space-enabler industries. Many of these firms face persistent financing challenges, partly because banks are unfamiliar with the sector. The initiative aims to close this gap by providing technical expertise, building market knowledge, and promoting the programme among companies less accustomed to commercial financing.
The Space TechEU programme will add to the European Commission’s existing space programmes. Through close cooperation it will ensure that Europe’s strategic priorities are matched with adequate financing.
Designing, manufacturing and launching of satellites and rockets will be eligible for financing under the new space financing programme, as well as space related investment including ground infrastructure and technology and data driven space applications, telecommunication, maritime navigation, agriculture, climate and resource management. Other investment in the space sector can also be considered.
