Spanish Banks Fund €31 Million for PLD Space’s MIURA 5 Project

In a major boost to the aerospace industry, Spanish banks Banco Santander and EBN Banco have spearheaded a €31 million financing deal for PLD Space’s MIURA 5 launcher. This landmark agreement also sees participation from the Instituto de Crédito Oficial (ICO) and is backed by Cesce’s Strategic Investments Policy with legal support from Deloitte and Watson Farley & Williams.

Financing the Future of Space Exploration

The funds are earmarked for the MIURA 5 space launcher programme. It focuses on both technological advancements and expanding PLD Space’s industrial capabilities. The move is seen as a significant investment in both space innovation and Spain’s positioning in the aerospace sector. With this financial injection, PLD Space aims to conduct the first launch of MIURA 5 by the end of 2025 and start commercial operations several months later in 2026.

Behind the Deal: Key Players and Their Roles

Banco Santander and EBN Banco have jointly led this syndicated loan with significant contribution from the ICO. EBN Banco also serves as the agent bank and guarantee agent. Cesce has provided underwriting for the deal under its strategic investment insurance line dedicated to the aerospace sector. This operation represents a notable milestone within Europe, particularly in a sector where traditional bank financing remains rare.

Strategic Moves for Industrial and Corporate Growth

The financing will not only aid the MIURA 5 programme but will also contribute to the expansion of PLD Space’s industrial infrastructure. The company plans to bolster its workforce, aiming to end 2024 with a team of 300 employees. Executive President of PLD Space, Ezequiel Sanchez, expressed his satisfaction, noting that the support from major financial institutions is a key enabler for safeguarding shareholder investment while moving forward with their highly ambitious plans.

A Milestone for Spain and Europe

The agreement was formalised at the Ministry of Economy, Trade and Enterprise and was overseen by the Secretary of State for Trade, Amparo López Senovilla. She highlighted the government’s commitment to fostering the growth of Spanish companies under the PERTE Aerospace programme. The deal sees Cesce offering coverage on behalf of the state, emphasising the importance of the project in enhancing Spain’s technological capabilities and international competitiveness.

Voices from the Financial Sector

Itziar Letamendi, Global Head of Growth Debt at Banco Santander, shared enthusiasm for the project, stating that MIURA 5 reflects the technological prowess of Spanish companies. Santander is keen to support the project and underscores its role in enhancing Spain’s footprint in the aerospace industry. Rafael Gómez Perezagua, Chairman of EBN Banco, echoed similar sentiments, emphasising the strategic relevance of the MIURA 5 project and its alignment with EBN Banco’s philosophy of tailored investment banking.

Corporate Commitment to High-Impact Projects

José Carlos García de Quevedo, Chairman of ICO, stressed the importance of this loan, noting it fits well within the framework of the Recovery, Transformation, and Resilience Plan. The plan is designed to generate quality employment and support the growth of Spanish companies. Fernando Salazar, Chairman and CEO of Cesce, pointed out that the operation is a testament to the kind of support they aim to provide for high-tech, digital and ecological projects, reinforcing Spain’s position in the ‘economy of the future’.

About PLD Space and Banco Santander

Founded in 2011, PLD Space is a pioneering aerospace company in Spain, respected across Europe for its advancements in reusable rockets. With its headquarters in Elche, Alicante, and technical facilities in Teruel, Huelva, and French Guiana, PLD Space stands as a vital player in small satellite deployment. On the other hand, Banco Santander, established in 1857, is one of the world’s leading banks by market capitalisation. The bank consolidates its activities into five global businesses, including Retail & Commercial Banking and Corporate & Investment Banking, and has made substantial commitments towards green financing and responsible banking.

This substantial financing move marks a significant milestone not only for PLD Space but also for the wider aerospace sector, firmly positioning Spain at the forefront of space exploration and technology.