Kacific Broadband Satellites Group has obtained long-term loans totaling $160 million from an Asian development bank and a private sector European institutional investor as it prepares to launch its first payload, Kacific1.
The Kacific1 satellite system is designed to bring high-speed internet to underserved communities in 25 Asian and Pacific nations, especially island nations such as Indonesia and the Philippines.
Kacific will use the $160 million financing package, which closed on December 2, to repay short-term loans it used to fund the construction of Kacific1, related infrastructure and launch costs.
The Asia Development Bank provided $50 million of the financing – $25 million directly and $25 million through its Leading Asia’s Private Infrastructure Fund, known as LEAP. The latter is supported by the Japan International Cooperation Agency.
A further portion came from European asset manager MEAG. This tranche was supported by a $50 million partial credit guarantee from GuarantCo.
The remaining amount took the form of a mezzanine loan from Australia’s Commonwealth Superannuation Corporation as trustee of the Aria Investments Trust. The deal was managed for Aria by HRL Morrison & Co.