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Astroscale Raises JPY 5 Billion through a Term Loan Agreement with MUFG Bank, Ltd.
Tokyo, Japan, Sep. 30, 2022 – Astroscale Holdings Inc. (Astroscale), the market leader in satellite servicing and long-term orbital sustainability across all orbits, today announced that it has signed a 3-year term loan agreement totaling JPY 5 billion (approx. USD 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).
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, Astroscale is now eligible for funding through SMRJ’s credit guarantee program with a 50 percent guarantee for principal, up to JPY 2.5 billion. The term loan is structured to leverage on the funding scheme, allowing Astroscale to secure JPY 5 billion through MUFG, the maximum principal amount covered by a 50 percent guarantee by the SMRJ.
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.
Nobu Okada, Founder and CEO of Astroscale says, “On-orbit servicing is poised to make significant contribution to achieving a safe and sustainable space environment (space sustainability) by functioning as infrastructure for the space economy. 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.”
With a vision of creating a sustainable space environment, Astroscale is leading the advancement of on-orbit servicing missions by partnering with public and private sector clients, building a foundation for the space infrastructure. In 2021, Astroscale successfully launched the End-of-Life Services by Astroscale-demonstration (ELSA-d) mission, the world’s first commercial mission to prove the core technologies necessary for on-orbit satellite servicing in low-Earth orbit (LEO), leading to complete its mission in complex rendezvous operation through a debris capture and removal demonstration of core technologies. Astroscale has become renowned internationally by paving the way for satellite servicing and long-term orbital sustainability and has been recognized as one of Time’s “100 Most Influential Companies” in the spring of 2022. Additionally, Astroscale has been honored with other awards and recognitions, including the Prime Minister’s “Japan Startup Award” and the “2021 Satellite Technology of the Year” by the U.S. space magazine publisher, Via Satellite.
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