BNDES finances Embraer’s aircraft production for export
R$ 2.2bn financing will enable commercial jets production and export
The Brazilian National Bank for Economic and Social Development (BNDES) approved financing to Embraer S.A. for producing and exporting commercial aircraft manufactured by the company.
The operation, in the order of R$ 2.2bn (US$ 400m), will be carried out through the BNDES Exim Pre-shipment, a direct bank credit line to produce national goods destined for export.
BNDES operation reinforces the US$ 650m revolving credit funding recently announced by Embraer with a foreign financial institutions group. The financing consummation is subject, among others, to the fulfillment of previous conditions established by BNDES and the execution of the respective contract.
“Credit operations are important for the resumption of aircraft production by Embraer at pre-Covid-19 pandemic levels and reinforce the strategic partnership between BNDES and Embraer started in 1997, consolidating BNDES support to the aeronautical industry and the export of Brazilian aircraft,” highlighted Bruno Aranha, director of BNDES.
“The longevity of the partnership between Embraer and BNDES illustrates the strength of this relationship that stimulates Brazilian exports and benefits society. Together with other actions that we are carrying out with Brazilian and international financial institutions, this operation reinforces our credibility for access to financial resources that will contribute to executing our growth plan,” said Antonio Carlos Garcia, CFO of Embraer.
The aviation sector is considered strategic due to the high technology involved, the employment of qualified labor, and the ability to generate innovations with positive impacts on the country's economy, in addition to being a relevant industry for guaranteeing national sovereignty through Defense products. Brazil is a country that can design, manufacture, and export Commercial, Executive, Defense, and Agricultural aircraft worldwide.
Since 1997, when BNDES began to support Embraer, the bank has financed approximately US$ 25bn in exports of the company’s aircraft, enabling the export of more than 1,275 units to airlines around the world. During the period, the contracted operations enabled the Brazilian manufacturer to compete in the foreign market on equal terms with its competitors.
BlueSky Business Aviation News | 17th November 2022 | Issue #678