On top of a recent US$650 million revolving credit facility with a foreign financial institution group, Brazilian planemaker Embraer has secured US$400 million in financing from the Brazilian National Bank for Economic and Social Development (BNDES).
The financing will be carried out through the BNDES Exim Pre-shipment, a direct bank credit line to produce national goods destined for export.
“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 which started in 1997, consolidating BNDES support to the aeronautical industry and the export of Brazilian aircraft,” highlighted Bruno Aranha, director of BNDES.
In Brazil, the aviation sector is seen as strategic due to the high technology involved, the employment of qualified labour, 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 defence products.
Since 1997, when BNDES first supported Embraer, the bank has financed approximately US$25 billion in exports of Embraer’s aircraft, facilitating the export of over 1,275 units to airlines around the world. Over this period of time, the contracted operations have enabled the Brazilian plane manufacturer to be competitive in the foreign market on equal terms with its competition. Embraer is the principal manufacturer of commercial jets with up to 150 seats, the primary exporter of high-value-added goods in Brazil and since its founding in 1969, the company has delivered over 8,000 aircraft. (£1.00 = US$1.18 at time of publication).