Description

Space is an extreme operating environment, and vast sums of capital are required to finance space activities. Existing satellite operators must consider the high cost of procuring, launching, and insuring new satellites compared to satellite earnings. And technological advances compel operators to upgrade their fleets with higher throughputs to remain competitive. Larger operators can rely on equity markets and retained earnings to meet these capital needs. But across the Asia-Pacific, new, smaller businesses are emerging that seek to access space’s vast commercial opportunities. Like all enterprises, these new businesses will live (or die) by their access to suitable financing. The particular paradox they face is that they will launch their most valuable asset into outer space. Assuming it survives the journey, it cannot be repaired or retrieved. And it will have zero residual value at the end of its operating life. Securing financing on the basis of such an asset presents novel issues at the intersection of the international and national laws that apply to outer space activities. In this context, this paper explores how three Asia-Pacific jurisdictions respond to the financing needs of Asia-Pacific satellite operators. First, the typical satellite financing models are established, and the particular financing challenges faced by regional satellite operators are identified. Second, the application of secured financing laws and relevant regulatory regimes is explored by reference to Australia, Hong Kong and Singapore. Third, legal reforms that have taken place outside the region, and at the international level, regarding the perfection and priority of interests in satellites, are discussed and potential improvements to the existing frameworks are proposed.

About the Speaker

Jack is a Research Associate at the Centre for Banking & Finance Law, NUS. His work has been published in the Journal of Space Law, the Asian Journal of International Law, the German Journal of Air & Space Law, the European Journal of Legal Studies and the Asian International Arbitration Journal. In 2020, he was elected to membership of the International Institute of Space Law. Before joining the Centre, Jack practised law with King & Wood Mallesons in Hong Kong and Singapore. While in Hong Kong, Jack was seconded to the Securities & Futures Commission for 6 months, where he worked on both policy and enforcement matters. During his 5 years in practice, Jack specialised in the regulation and financing of emerging technologies projects, with a particular focus on satellites and other commercial space applications. He is admitted to practice law before the Supreme Court of Victoria and the High Court of Hong Kong.