Roskosmos will build two factories for serial production of satellites

Yury Borisov, CEO of the state corporation, told Vedomosti about plans to build two enterprises using borrowed funds in an exclusive interview.

“One will be built in cooperation with ISS Reshetnev – perhaps in Krasnoyarsk, because all the competencies are there. The other one is presumably in the Moscow region, because there is a cluster of other enterprises here, ”Borisov explained. He noted that “optimal logistics” are needed so as not to carry materials across the country.

JSC “Information Satellite Systems” Academician M. F. Reshetnev (part of Roskosmos) is the largest Russian developer and manufacturer of spacecraft for communications, television broadcasting, relaying, navigation and geodesy. Located in the city of Zheleznogorsk, Krasnoyarsk Territory. Numerous enterprises of the state corporation are located in the Moscow region, including VNIIEM, RSC Energia, GKNPTs im. Khrunichev and others.

Roskosmos plans to raise funds for the construction of factories, including through bonds. Debt securities will be issued by the financial structure of the state corporation, they are planned to be placed on Russian stock exchanges mainly among authorized banks, as well as private investors, Borisov said.

“The maximum volume is up to 50 billion rubles, the term is 15–20 years, coupon income is paid every 181 days,” said the head of Roskosmos. The initial bond issue is scheduled for 2023 in the amount of 10 billion rubles, he added.

Now all Russian enterprises produce 15 satellites a year.

Theoretically, they are able to increase the output to 42 units, but this is not enough, says Borisov. “Today, Elon Musk produces six spacecraft a day, plans to create a constellation of as many as 42,000 satellites by 2030. China’s production capacity is over 500 satellites per year,” says the head of Roscosmos. Europe and India are actively increasing production capacities, he notes.

According to Borisov, at the turn of 2025-2026. Russia should produce 200-250 satellites per year, and by 2030 – at least one satellite per day. He hopes that private companies will be able to help state corporations achieve these goals. Together with them, Roskosmos is now creating a virtual image of the space constellation, which will appear by 2030, Borisov explained.

There are no technical problems in launching the production of satellites for remote sensing of the Earth and communications, says Pavel Pushkin, an independent expert on space activities. There is a production of chips for such satellites in Russia – although they are inferior to imported ones, they solve their problems, the expert says. The problem is, according to him, in the search for personnel and teams that can solve this problem.

If Roskosmos plans to place a targeted loan for the construction of plants, then this is similar to infrastructure bonds, says the asset manager “BCS investment world” Ruslan Nikolenko. Now the state corporation has no outstanding bond issues, but the AAA issuer rating from ACRA and the possible coverage with state guarantees make them interesting for the market, the expert believes.

Taking into account the parameters of the issue and the status of the issuer, we can talk not about a classic placement, but about long-term lending in the form of a bond issue, says Evgeny Vorobyov, head of the credit analysis department of Ingosstrakh Investments Management Company. According to him, due to the special status of Roskosmos, the issue will be of interest primarily to large state-owned banks. Among market investors, the bonds of the state corporation are unlikely to be popular due to the very long maturity, suggests Vorobyov.