SES Prices €650 Million Hybrid Bond at 7.375% to Strengthen Balance Sheet and Fund Satellite Infrastructure

SES Raises €650 Million Through Hybrid Capital Issuance

Global satellite communications operator SES S.A. has successfully priced €650 million in SPACE hybrid securities, reinforcing its balance sheet while securing long-term capital for satellite infrastructure and connectivity investments.

The transaction was officially announced on 17 March 2026, with the securities issued by SES Financing S.à r.l., a wholly owned subsidiary of SES. The hybrid instruments carry a 7.375% annual coupon and are structured as subordinated perpetual securities, a financing mechanism widely used by infrastructure companies to balance debt funding with equity-like capital treatment.

The securities are guaranteed on a subordinated basis by SES and SES Americom, the company’s U.S. subsidiary.

Refinancing Existing Capital and Extending Financial Flexibility

A major portion of the proceeds will be used to refinance €525 million of existing hybrid securities, allowing SES to optimise its capital structure and extend its funding horizon.

Hybrid securities are commonly used by large infrastructure operators because they provide equity credit from rating agencies while remaining attractive to institutional bond investors seeking higher yields.

SES maintains strong credit positioning in capital markets, with Ba1 and BBB- ratings from Moody’s and Fitch, respectively.

The refinancing component of the transaction allows SES to replace older capital instruments while maintaining financial flexibility for future investment cycles.

Funding Next-Generation Satellite and Connectivity Systems

Beyond refinancing, the capital raise supports SES’s continued investment in next-generation satellite infrastructure, orbital capacity expansion, and global connectivity services.

Satellite operators are facing growing demand from governments, telecom operators, aviation networks, maritime services, and enterprise broadband clients, all requiring resilient and low-latency global communications networks.

These infrastructure upgrades require substantial upfront capital, making hybrid debt instruments a strategic financing tool for operators seeking to scale global networks without diluting shareholders.

Investor Demand Reflects Appetite for Infrastructure Yield

The successful €650 million placement highlights strong institutional demand for infrastructure-linked debt, particularly securities tied to long-duration assets such as satellite networks.

For investors, hybrid securities provide exposure to predictable infrastructure cash flows with enhanced yield profiles, while issuers benefit from improved balance-sheet metrics and long-term financing stability.

SES’s latest issuance demonstrates how major space infrastructure companies are increasingly turning to global capital markets to fund the next generation of communications networks.