The financing from ADB comprises a loan from ADB and a parallel loan provided by the Leading Asia’s Private Infrastructure Fund (LEAP), which is administered by ADB. LEAP is one of ADB’s co-financing vehicles dedicated to private sector infrastructure in Asia and the Pacific. GuarantCo, a member of the Private Infrastructure Development Group, will provide a US$50 million partial credit guarantee to a private sector European institutional investor.
Taken altogether, these credit facilities secure long-term financing that enables Kacific to repay short-term facilities used to fund the construction of the Kacific1 payload and the associated infrastructure and launch costs. The financing reflects the recognition, by Asian Development Bank and GuarantCo, of the impact Kacific1 will have on development within the region and the benefits that Kacific1 will bring to un- and under-served communities in Asia and the Pacific, particularly in rural and remote areas of small island nations in the Pacific, and larger island nations like Indonesia and the Philippines.
The financing is underpinned by the large number of customers, in 25 nations, who have already signed up to Kacific’s service in anticipation of the Kacific1 satellite commencing operation in early 2020.
Kacific Founder and CEO, Christian Patouraux noted that the support from GuarantCo, ADB, and private investors will be pivotal in providing the long-term certainty that will allow Kacific to transition seamlessly into operational mode, following the launch of Kacific1. Their commitment will lead to life-changing outcomes for millions living in remote communities, bringing them fast, affordable internet services that will transform education, healthcare, economic development and social inclusion.