The Export-Import Bank of the United States (EXIM) is actively processing a pipeline of applications worth $5 billion related to the space industry. This comes as companies in the sector seek financing for their projects amidst a tighter capital market.
EXIM has a history of financing space projects, including satellites and rocket products. During tougher economic times, there tends to be an increase in applications for funding from the space sector. Most of EXIM’s financing for the industry was provided between 2010 and 2015.
According to Judith Pryor, EXIM’s first vice president and vice chair of the board of directors, around $1.3 billion of the applications in the pipeline are expected to be approved within a year, while the remaining $4 billion are still in earlier stages of consideration.
One notable trend in the applications received by EXIM is the growing number of companies building low Earth orbit satellite networks, also known as LEO constellations. These networks are designed to provide services such as communications and imagery. EXIM acts as an alternative lender to support U.S. companies involved in the space industry and evaluates each transaction on its own merits, without favoring specific areas within the sector.
The role of EXIM extends beyond providing financing for space projects. It also helps U.S. space companies secure contracts with foreign entities, giving them a competitive edge, particularly in competition with China.
EXIM remains committed to its non-discriminatory policy, ensuring that it does not favor any particular company or project. Its focus is on supporting U.S. companies in the space industry by considering each individual transaction based on its merits.
Overall, EXIM’s involvement in financing space projects is an important contribution to the growth and development of the industry, as it helps companies secure the necessary funding to bring their projects to fruition.