Embraer SA, the Brazilian manufacturer of regional and mid-range aircraft, has been approved for export financing worth a reported $400 million by the Brazilian National Bank for Economic and Social Development. The move solidifies other recent efforts by the OEM to improve its liquidity, to remain globally competitive in the aerospace sector.
“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," stated Antonio Carlos Garcia, CFO of Embraer.
BNDES is the same state-backed financing body that recently agreed to fund exports of six Embraer E-175 jets to SkyWest Inc., the Utah-based regional carrier that is one of the largest U.S. operators of Embraer jets. Since 1997, it has has financed approximately $25 billion worth of Embraer exports, covering more than 1,275 aircraft to airlines worldwide.
Last month Embraer also gained access to a $650-million revolving credit line assembled by several Brazilian and international finance bodies.
"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," according to a statement by BNDES director Bruno Aranha.
In announcing its financial progress, Embraer emphasized that aerospace manufacturing is strategically important to Brazil due to its high technology contributions and skilled labor requirements, along with the innovations it develops within the national economy. Embraer also helps support Brazil’s national sovereignty through its Defense products, it added.
