20 June 2024

EIFO approves Danish government export loan for Indonesian project covering a 650 MSEK contract for GomSpace

image Photo: Test satelite. Photo: GOMSpace.
EIFO (Export & Investment Fund of Denmark) has approved the government export loan concerning the contract for 20 satellites for Indonesia's Ministry of Marine Affairs & Fisheries.

Following the December 22, 2023, press release, concerning the contract for 20 satellites for Indonesia's Ministry of Marine Affairs & Fisheries, with a value to GomSpace of approx. 650 MSEK, the company informs that the next milestone of government export loan approval has been reached successfully, and the Danish government via EIFO will provide the necessary loans and guarantees to implement the full project in Indonesia as outlined.

EIFO has done an extensive due diligence of EPGS Partners, the joint venture between Ellipse Projects France and GomSpace, and concluded that the company and its partners meet the high standards for government loans and export credits. The full contract value for EPGS Partners with the Indonesian Ministry of Marine Affairs & Fisheries is 150 MEUR, where of approx. 60 MEUR (650 MSEK) will go directly to GomSpace.

Based on this approval by EIFO, the next steps are negotiations of the terms and conditions for the government loan between Denmark and Indonesia. This is expected to be completed within Q3 2024, whereafter the final contract can be considered in effect. GomSpace has started the project preparations, in anticipation of a project start end of Q3. GomSpace will proceed with the launch of the first satellite early Q3 2024 as planned.

GomSpace CEO, Carsten Drachmann comments: “I would like to extend my sincere gratitude to the team at EIFO for their collaboration and guidance in helping us reach this significant decision. This marks a major milestone for GomSpace, not only because it represents the largest contract in our company's history, but also because GomSpace has now been recognized by EIFO as qualified for substantial export guarantees. This recognition paves the way for future export guarantees in other regions globally. Once the final loan documentation is in place and the project is underway, we look forward to working closely with the EIFO team to explore further opportunities. I also want to extend my gratitude to Ellipse Projects, who has been an excellent and critical partner in reaching this milestone.”

EIFO CCO Peter Boeskov: “EIFO is pleased to give in-principle approval for a €135m export loan to the Government of Indonesia, the proceeds of which will be for the procurement of a satellite system from, among others, Danish space technology company GOMspace. We look forward to finalising the loan documentation which will pave the way for full and final EIFO approval. It is part of EIFO's strategy to expand our activities within the Danish defense & security sector and this potential transaction involving a satellite based maritime surveillance system is an important step in that direction. “

GomSpace highlights that it will not consider the project as order intake until the final terms and conditions for the loan guarantees have been completed between Denmark and Indonesia. The company cannot control the final financing agreement nor other circumstances that may affect the completion of the contract as outlined. The guidance on positive free cashflow for 2nd half of 2024 remains unchanged.

Further updates can be anticipated within Q3 2024.