UK Export Finance, the UK’s export credit agency, has supported a £89million loan to Embraer.
The deal will help Embraer access critical parts, components and technology from UK suppliers that will enhance its commercial and defence aircraft programmes.
This is a part of broader initiatives by both nations to strengthen trade ties and is hoped will promote future collaboration between UK suppliers and Brazilian manufacturers in aerospace.
UKEF provided support by acting as guarantor to the lender, JP Morgan Chase Bank, London Branch (JPMorgan), ensuring Embraer benefits from flexible repayment terms.
Samir Parkash, interim CEO of UKEF said: “Now, with this UKEF first deal with Embraer, we can export world renowned British expertise and technology in the aviation and aerospace industry to Brazil – an economy that was rapid in recovering pre-pandemic levels of economic activity, that keeps on growing strong in 2022 and is an important trading partner to the UK. In fact, in the four quarters up to Q1 2022 trade in goods and services between the two nations increased by 18% year-over-year reaching £6.5bn.”
Antonio Carlos Garcia, CFO of Embraer, said: “This first Embraer deal with UKEF shows the success of our strategy to diversify our suppliers and financial partners. We are always looking for actions that improve the profile of our debt, and this operation is another step in that direction.”
John Meakin, Global Head of Export & Agency Finance at JP Morgan, said: “We are delighted to support a strategically important global client in the aviation sector to meet their objectives and partner with UKEF in delivering commercially relevant financing. The financing structure is flexible and innovative, and it would not have been possible without the commitment of all parties involved in rolling out this milestone program.”