Embraer S.A. (Embraer) has signed a memorandum of understanding with an affiliate of Apollo, on behalf of its clients and managed funds, with respect to a US$1.5 billion (£1.3 billion) customer financing programme for Embraer’s regional aircraft.
Apollo, working alongside Embraer, will offer a comprehensive range of innovative and bespoke solutions across the spectrum of customer and delivery financing. The programme also includes options to explore financing for customers’ ESG -focused projects, such as the development of green technologies. Apollo’s financing capabilities encompass various debt financing alternatives along with PDP (Progress Delivery Payment) financing and a full suite of leasing options.
Funding would be primarily available through Apollo’s aviation business, which encompasses dedicated investment funds, its aviation lending platform PK AirFinance and its leasing and servicing affiliate Merx Aviation. Apollo can also access additional low-cost capital across its broader investment platform. As the first major transaction under the new initiative, the firms also disclosed that Apollo, on behalf of its clients and managed funds, entered a definitive sale and leaseback agreement, including PDP financing, for six Porter Airlines E195-E2s scheduled for delivery in 2023.
