Spanish rocket startup PLD gets $34 million loan to build orbital rocket
The Spanish rocket startup PLD has obtained a $34 million bank loan to build its Miura-5 orbital rocket.
On 12 July, PLD Space announced that it had received a €31.2 million syndicated loan from Banco Santander, EBN Banco, and the Instituto de Crédito Oficial. A syndicated loan is provided by a group of lenders to distribute the financial risk among the participating lenders.
…According to the company, the loan amount will primarily be used for the Miura 5 rocket development programme, which includes both the development of the rocket and the expansion of the company’s industrial capabilities. It will also be used to support the company’s growth, with PLD planning to surpass 300 employees by the end of 2024.
For a rocket startup to get significant financing through a bank loan like this is very unusual. Almost always banks are reluctant to loan money for such a risky project. Instead, rocket startups get investment capital from venture capitalists, who are willing to take greater risks. PLD itself has already raised $164 million in this manner, $46 million of which came from the Spanish government itself.
I therefore wonder if some political pressure from the Spanish government helped convince the banks to approve the loan.
Regardless, PLD hopes to do the first orbital test launch of Miura-5 in 2025, with operational flights to follow the next year.
The Spanish rocket startup PLD has obtained a $34 million bank loan to build its Miura-5 orbital rocket.
On 12 July, PLD Space announced that it had received a €31.2 million syndicated loan from Banco Santander, EBN Banco, and the Instituto de Crédito Oficial. A syndicated loan is provided by a group of lenders to distribute the financial risk among the participating lenders.
…According to the company, the loan amount will primarily be used for the Miura 5 rocket development programme, which includes both the development of the rocket and the expansion of the company’s industrial capabilities. It will also be used to support the company’s growth, with PLD planning to surpass 300 employees by the end of 2024.
For a rocket startup to get significant financing through a bank loan like this is very unusual. Almost always banks are reluctant to loan money for such a risky project. Instead, rocket startups get investment capital from venture capitalists, who are willing to take greater risks. PLD itself has already raised $164 million in this manner, $46 million of which came from the Spanish government itself.
I therefore wonder if some political pressure from the Spanish government helped convince the banks to approve the loan.
Regardless, PLD hopes to do the first orbital test launch of Miura-5 in 2025, with operational flights to follow the next year.