Bond Update: SpaceX USD Bond; Yield up to 6.8%, Now Available on iFAST!

SpaceX issued five 5- to 30-year US dollar bonds with yields of 5.4% to 6.9%. Now, you can invest them via iFAST platforms!

SpaceX has a credit rating of BBB/BBB+ (Standard & Poor's/Fitch) with a stable outlook.

Founded in 2002, SpaceX comprises three main parts: Space (rocket business), Connectivity (Starlink satellite network), and Artificial Intelligence (social platform X and artificial intelligence Grok). Founder and the world's richest man, Elon Musk, holds 78% of the voting shares, making him the largest shareholder. The group listed on the Nasdaq Stock Exchange in 2026 (stock code SPCX.US) and currently has a market capitalization of approximately USD 2.1 trillion.

In the first quarter of 2026, the company's operating performance continued to grow, with main business revenue reaching USD 4.7 billion, a 15% increase year-on-year. Starlink business saw steady growth, recording revenue of approximately USD 3.3 billion in the first quarter (accounting for approximately 69%). While launch services remain an important source of revenue, the Starlink satellite internet investment and operation segment has become the absolute mainstay of revenue, demonstrating extremely high profitability, with operating profit reaching USD 1.2 billion, contributing the vast majority of core profits.

Regarding credit, as of the latest disclosure for the first quarter of 2026, the company has signed several major new government and commercial contracts, resulting in a large backlog of orders. Combined with 10.3 million Starlink subscribers, this provides momentum for long-term revenue growth. As of the end of March 2026, the company's total debt was approximately USD 29.1 billion, with a high proportion of long-term borrowings, indicating a predominantly long-term debt structure and manageable short-term debt repayment pressure. Adjusted EBITDA for the first quarter reached USD 1.1 billion, and the interest coverage ratio (on a full-year basis) remained at a healthy level of over 3 times. While the company noted that continued increases in capital expenditures have led to losses and challenges to operating cash flow, the overall credit risk remains manageable considering its leading position in global aerospace technology, Starlink's strong and sustainable revenue streams, and its substantial cash reserves following the IPO.

All five bonds issued by SpaceX are investment grade, with maturities ranging from 5 to 30 years, and current yields to maturity exceed 6.8% (see Table 1). SpaceX's entire corporate bond portfolio is now available on the FSM platform, offering attractive yields compared to its industry peers. However, investors should be aware that the company's involvement in artificial intelligence and space-related industries means its capital expenditures may pose challenges to cash flow. Investors should carefully weigh the risks and returns.

Table 1: SpaceX USD bonds

Bond	Tenor	Investor Buy Price	Net YTM
SPCX 5.350% 15Jul2031 Corp (USD)	5.03	99.53	5.24%
SPCX 5.650% 15Jul2033 Corp (USD)	7.04	99.07	5.61%
SPCX 5.875% 15Jul2036 Corp (USD)	10.04	98.24	5.93%
SPCX 6.600% 15Jul2046 Corp (USD)	20.05	96.62	6.76%
SPCX 6.650% 15Jul2056 Corp (USD)	30.05	95.56	6.85%
Source: iFAST Data as of 3 July 2026

Declaration: For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) and the analyst who produced this report hold NIL positions in the abovementioned securities. This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report – including all investment theses, ratings, price targets and conclusions – has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.

RISK DISCLOSURE STATEMENTS FOR BONDS

Key risks of investing in bond

Credit risk - bonds are subject to the risk of the issuer defaulting on its obligations. It should also be noted that credit ratings assigned by credit rating agencies do not guarantee the creditworthiness of the issuer; and
Liquidity risk - some bonds may not have active secondary markets and it would be difficult or impossible for investors to sell the bond before its maturity; and
Interest rate risk - bonds are more susceptible to fluctuations in interest rates and generally prices of bonds will fall when interest rates rise; and
Exchange rate risk - If the bond is denominated in a foreign currency, you face an exchange rate risk. Any fall in the foreign currency will reduce the amount you receive when you convert a payment of interest or principal back into your local currency; and
Event risk - A corporate event such as a merger or takeover may lower the credit rating of the bond issuer. In case the corporate restructurings are financed by the issuance of a large amount of new debt-burden, the company's ability to pay off existing bonds will be weakened.

Key risks of investing in high-yield bonds

Higher credit risk - since they are typically rated below investment grade or are unrated and as such are often subject to a higher risk of issuer default; and
Vulnerability to economic cycles - during economic downturns such bonds typically fall more in value than investment grade bonds as (i) investors become more risk averse and (ii) default risk rises.

Bonds with special features

Some bonds may contain special features and risks that warrant special attention. These include bonds:

That are perpetual in nature and interest pay-out depends on the viability of the issuer in the very long term;
That have subordinated ranking and in case of liquidation of the issuer, investors can only get back the principal after other senior creditors are paid;
That are callable and investors face reinvestment risk when the issuer exercises its right to redeem the bond before it matures;
That have variable and/or deferral of interest payment terms and investors would face uncertainty over the amount and time of the interest payments to be received;
That have extendable maturity dates and investors would not have a definite schedule of principal repayment;
That are convertible or exchangeable in nature and investors are subject to both equity and bond investment risk; and/or
That have contingent write down or loss absorption feature and the bond may be written-off fully or partially or converted to common stock on the occurrence of a trigger event.

Remarks

Warning for bonds that are unauthorised by SFC: The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.
SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance. It does not mean the product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.
These quotes are only indicative prices and are subject to change.

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