Financing space assets has many of the hallmarks of financing traditional aircraft and related assets. However, it does operate in its own unique environment, with its own significant opportunities and pitfalls.
For financiers, this means opportunities to expand beyond traditional aviation and trade finance, into emerging technologies that will shape a vast industry. Having sound financing structures in place for space activities will be critical. Early movers will have the advantage of building track record and shaping future regulation.
So here we go – 6 things you should know about financing a space asset:
- The space sector has multiple players, with a vibrant and growing APAC industry
- The legal framework consists of international and jurisdiction-specific laws
- Successful structuring requires considerations of the unique attributes of space assets
- Regulatory due diligence requires knowing the touchpoints and jurisdictions in play
- Strong (space-specific) contracts are essential to protect financial interests
- Address residual risks