Astroscale Raises ¥ 5 Billion through a Term Loan Agreement
Astroscale Holdings (Astroscale) has signed a 3-year term loan agreement totaling ¥5 billion (approx. $35 million) with MUFG Bank, Ltd. (MUFG), leveraging the Credit Guarantee Program to Facilitate Businesses to Utilize the Results of Innovative Technology Research offered by Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (SMRJ).
"We will accelerate on-orbit services technology development through this new term loan in order to meet global needs for satellite servicing.” Nobu Okada, Founder and CEO of Astroscale.
Nobu Okada, Founder and CEO of Astroscale.
Prior to signing this agreement, Astroscale was selected as a certified operator for the Business Activity Plan for Utilizing the Results of Innovative Technology Research by the Ministry of Economy, Trade and Industry, pursuant to the Industrial Competitiveness Enhancement Act. Consequently, the company is now eligible for funding through SMRJ’s credit guarantee program with a 50 percent guarantee for principal, up to ¥2.5 billion (≈$17.3 million). The term loan is structured to leverage on the funding scheme, allowing Astroscale to secure ¥5 billion (≈34.6 million) through MUFG, the maximum principal amount covered by a 50 percent guarantee by the SMRJ.
Astroscale will Use Loan Proceeds To Accelerate Technology Development
Over the past few years, awareness about the orbital debris environment has been growing at an accelerated pace. Under such circumstances, Astroscale is leading the global partnership for advancing the development across four on-orbit services; End-of-Life Services (to prevent future debris), Active Debris Removal (to remove current debris), In-Space Situational Awareness (for on-orbit observation and inspection), and Life Extension (to extend life of satellites). Astroscale will use the proceeds from this loan agreement to further accelerate the development of these on-orbit services.
"On-orbit servicing is poised to make a significant contribution to achieving a safe and sustainable space environment (space sustainability) by functioning as infrastructure for the space economy," said Nobu Okada, Founder and CEO. "As our awareness for a sustainable space environment continues to grow over time, we are seeing a sharp rise in demand for our services. We will accelerate on-orbit services technology development through this new term loan in order to meet global needs for satellite servicing.”
(Source: Astroscale news release. Images from file)