UAE satellite service provider Thuraya invests USD 17.5 mn in IoT provider for logistics + transport companies

UAE’s Thuraya invests in Swiss IoT network operator:Thuraya will invest USD 17.5 mn in Swiss IoT network operator Astrocast, according to an Astrocaststatement. The investment will be in the form of a convertible loan, with 8% interest and a tenure of 45 months from the date of issuance. Thuraya is a subsidiary of UAE-based mobile satellite service firm Yahsat.

The investment will also see the companies extend a technical cooperation agreement they signed in 2019, according to the statement.

What they said: Thuraya sees this as strengthening its push into satellite-enabled IOT. “Through this agreement, we are committed to enabling innovative solutions in the maritime, energy, logistics, transportation, mining and agriculture industries,” said Yahsat CEO Said Ali Al Hashemi.

SOUND SMART- A convertible loan is a form of financing that provides companies with a line of financing that can later be repaid, or — if triggered by default or the deadline for repayment passes — converted into equity.

BACKGROUND- Thuraya is a UAE satellite operator that offers communications solutions to the energy, government, broadcast media, maritime, military, and aerospace industries. Astrocast is a nanosatellite IoT network operator that offers satellite IoT services to sectors with challenging connectivity, including the maritime, agriculture, environmental and utilities, land transport, mining, and oil and gas industries.