Abu Dhabi’s Al Yah Satellite Communications Co. (Yahsat) said its subsidiary has signed an agreement to invest $17.5 million in Astrocast, a Low Earth Orbit (LEO) and Internet of Things (IoT) network operator.

Thuraya Telecommunications, a mobile satellite services company, will make the investment as a convertible loan, Yahsat said in a filing on Monday to the Abu Dhabi Securities Exchange (ADX), where its shares trade.

This marks Thuraya’s first investment in a LEO satellite constellation.

As part of the agreement, both parties will also look to extend a technical cooperation agreement for another four years that was originally entered between Astrocast and Thuraya in 2019.

Astrocast operates advanced global nanosatellite IoT networks with a focus on enabling low power wide area connectivity solutions.  

(Writing by Brinda Darasha; editing by Seban Scaria)