The Brazilian National Bank for Economic and Social Development (BNDES) has approved financing to Embraer for producing and exporting commercial aircraft manufactured by the company. The operation, in the order of R$ 2.2 billion (US$400 million), 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$650 million revolving credit funding recently announced by Embraer with a foreign financial institutions group. The financing consummation is subject, among others, to the fulfilment 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.
Since 1997, when BNDES began to support Embraer, the bank has financed approximately US$25 billion in exports of the company’s aircraft, enabling the export of more than 1,275 units to airlines around the world.