Telesat Completes $2.54 Billion Funding Agreements for Telesat Lightspeed Satellite Constellation with Strong Government Backing

Core Insights - Telesat has secured funding agreements with the Government of Canada and the Government of Quebec for its Telesat Lightspeed Low Earth Orbit (LEO) broadband satellite constellation, marking a significant milestone in the project [1][2][3] Funding Details - The Government of Canada has provided a loan of CAD 2.14 billion with a floating interest rate of 4.75% above the Canadian Overnight Repo Rate Average (CORRA) and a 15-year maturity [2] - The Government of Quebec has committed CAD 400 million under similar terms, with warrants for 1.87% of common shares based on a valuation of USD 3 billion for Telesat LEO [2] Project Impact - Telesat Lightspeed is expected to bridge the digital divide by enhancing internet and 5G access in underserved communities globally, while also modernizing satellite communications for the Canadian government and contributing to NATO and NORAD modernization efforts [3][4] - The project is anticipated to create thousands of high-quality jobs in Canada and generate billions in economic investment [3][5] Workforce and Expenditure - Telesat has increased its Canadian workforce by approximately 33% over the past year and expects capital expenditures for the Telesat Lightspeed program to range from CAD 1 billion to CAD 1.4 billion in 2024 [4] - The first Telesat Lightspeed satellites are scheduled for launch in mid-2026, with over 90% of suppliers already selected for the program [4] Government Support - Canadian government officials emphasize the project's role in job creation, economic growth, and positioning Canada as a leader in the new space economy [5][6][7] - The investment aims to ensure high-speed internet access for all Canadians by 2030, highlighting the necessity of such connectivity in modern society [6]