Telesat’s headquarters in downtown Ottawa, Ontario, Canada. Photo: Telesat

Telesat completed its Lightspeed funding agreements with the government of Canada and the government of Quebec, the operator announced Friday. Telesat now has the financing sources in place to fund Low-Earth Orbit (LEO) satellite network including manufacturing and launching the satellites. 

As previously announced, the government of Canada will loan $2.14 billion Canadian dollars and carry a floating interest rate that is 4.75% above the Canadian Overnight Repo Rate Average (CORRA) with a 15-year maturity. Interest is payable in-kind during the Telesat Lightspeed construction period, followed by a 10-year sculpted amortization. 

The government of Canada will also receive warrants for 10% of the common shares of Telesat LEO based upon an equity valuation for Telesat LEO of $3 billion U.S. dollars. 

The government of Quebec loan is issuing a loan for $CA 400 million and has terms that largely mirror the government of Canada loan but with warrants for 1.87%. 

Prime Minister Justin Trudeau commented on the significance of Telesat Lighspeed, built by Canadian company MDA Space: “Our government is focused on Canadians, and with Lightspeed, Telesat and MDA are designing and manufacturing the largest space program in Canadian history – creating thousands of jobs, growing our economy, and getting high-speed internet to Canadians,” Trudeau commented. 

Telesat announced the news the same day MDA Space announced construction on a major factory expansion to buid the constellation. MDA Space is the prime contractor. Telesat plans to launch the first Lightspeed satellites in mid-2026. 

“Telesat Lightspeed will help bridge the digital divide in Canada and throughout the world, create and sustain thousands of high-quality jobs in Canada, deliver billions of dollars of investment in the Canadian economy, spur domestic innovation and exports, and ensure that Canada and Quebec are at the forefront of the rapidly growing New Space Economy,” Telesat CEO Dan Goldberg commented.