In short: most large satellite systems are not financed on commercial demand alone. A government contract, loan or concession sits underneath and carries the early risk, and private money builds on it. Whether that anchor makes the system bankable depends less on the size of the government's commitment than on its terms: can it be terminated, is it funded, when does it pay, and can the payments be assigned to lenders?
Three models on file
| Model | Example | How the government participates |
|---|---|---|
| Concession | IRIS², the EU's secure connectivity constellation (December 2024) | A 12-year concession to the SpaceRISE consortium; about €6.5bn of the €10.6bn total is public funding from the EU, member states and ESA |
| Government loan | Telesat Lightspeed (September 2024) | C$2.14bn from the Government of Canada and C$400m from Quebec, at CORRA plus 4.75% over 15 years, interest paid in kind during construction, then 10-year sculpted amortisation |
| Public bank lending | EIB loans to SES (2022 and 2024) and to Poland's satellite programme (2024) | Long-term loans priced off EIB funding, for projects meeting EU policy aims |
The UK government's purchase of OneWeb out of Chapter 11 in 2020, alongside Bharti Global, is a fourth model: the state as equity investor of last resort.
The rest of this guide covers the contract terms lenders test (appropriations, termination for convenience, milestones, assignment), how government loans sit with private debt, and a bankability checklist. It is free with a work email, along with the register downloads and the in-house counsel tools.
Read the full guide
Free. Work emails only. Unsubscribe at any time.
Questions
What is an anchor contract in the space industry?
A long-term contract with a government customer that covers a large share of a new system's capacity or cost, giving lenders and investors confidence that the system will have revenue from the start.
How is IRIS² funded?
IRIS² is a 12-year concession awarded in December 2024 to the SpaceRISE consortium. The total programme is about €10.6bn, of which about €6.5bn is public funding from the EU, member states and ESA; the rest is private.
What terms did Canada's Telesat Lightspeed loans carry?
A C$2.14bn Government of Canada loan and a C$400m Government of Quebec loan at CORRA plus 4.75% over 15 years, with interest paid in kind during construction and then a 10-year sculpted amortisation.
Sources
- SpaceRISE consortium: agreement as concessionaire for IRIS² (December 2024)
- Telesat: C$2.54bn funding agreements for Telesat Lightspeed (September 2024)
- FAR Subpart 32.8: Assignment of Claims
General information on public law and market practice as at 28 Oct 2026, not legal advice on any transaction.