Embraer SA: BNDES supports the export of 24 Embraer aircraft to the USA
BNDES supports the export of 24 Embraer aircraft to the United States
São José dos Campos – SP – October 7, 2021 – The Brazilian Development Bank (BNDES) has approved financing to export 24 Embraer E175 commercial jets to SkyWest Airlines, the world’s largest regional airline, based in Utah in the United States. The agreement strengthens the Brazilian industry at a time when it is still feeling the effects of the COVID-19[female[femininepandemic and strengthens the presence of high technologyBrazilian products in the world’s largest and most competitive aviation market. Deliveries began in August and will continue until April 2022.
The financing of more than 500 million US dollars (over 2.6 billion reais) is in line with the operations carried out by export credit agencies in countries with advanced aviation industries. The aviation sector is seen as strategic by nations due to aspects such as advanced technology, continuous innovation and highly skilled workers. Export credit agencies intervene in addition to the private credit market, more intensely in times of crisis, which is clear in the story between BNDES and Embraer.
Bruno Aranha, director of productive and socio-environmental credit at BNDES, underlines the institution’s importance in export financing: “BNDES has an established and significant presence in the Brazilian export system, with a performance countercyclical that has maintained Brazilian exporters for more than 25 years. This agreement is another important step for BNDES, supporting Embraer in the resumption of sales growth in the context of the biggest challenge ever encountered in the history of the aeronautical sector, thus ensuring the maintenance of skilled jobs in the country ” , did he declare.
The E175, which carries up to 88 passengers, was one of the models least impacted by the effects of COVID-19. Currently, more than 600 E175s are in service worldwide, making it the leader in its segment.
Despite the effects of the pandemic, the US market has recovered. In May 2020, the number of flights in operation was only 24% of what it was in May 2019. However, this rate rose to 80% in May 2021. With the economic recovery on the horizon, the BNDES and Embraer have stepped up their operations.
“As the world’s largest owner / operator of the Embraer E175 aircraft, SkyWest is very pleased with the support of BNDES as the primary financial partner for this important aircraft,” said Robert Simmons, CFO of SkyWest. “BNDES has embodied the partnership through years of growth in a variety of economic environments.”
“BNDES support is essential as the air transport market recovers in the United States, the primary market for our Embraer 175 jet.
resumption of commercial flights around the world and this has benefited the Embraer jets, which are the most efficient in the industry. We are the largest exporter of high-value goods in Brazil and have been able to implement and offer smart and flexible financing solutions to our clients, in line with the growth strategy we are projecting for the coming years. Said Antonio Carlos Garcia, Director of Embraer Executive Vice President, Financial and Investor Relations.
Financing will be provided via BNDES Exim Post-shipment, transferred in Brazilian reals (R $) in Brazil to the exporter (Embraer). In this type of operation, the importer undertakes to pay BNDES in dollars, bringing this foreign currency into Brazil. Credit insurance covering commercial, political and extraordinary risks is included in the transaction.
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BNDES and Embraer
Since 1997, BNDES ‘support for Embraer’s exports has offered significant competitive conditions like those of its international competitors, which also obtain financing from development banks and export credit agencies in their respective countries. The bank contributes to maintaining the production and employment levels of the company, which stands out in Brazil for the high level of technology and innovation of its products, as well as its supply chain.
A global aerospace company headquartered in Brazil, Embraer operates in the areas of commercial and executive aviation, defense and security, and agricultural aviation. The company designs, develops, manufactures and markets aircraft and systems, providing service and support to aftermarket customers.
Since its inception in 1969, Embraer has delivered over 8,000 aircraft. On average, every 10 seconds or so, an aircraft manufactured by Embraer takes off somewhere in the world, carrying more than 145 million passengers per year.
Embraer is the leading manufacturer of commercial aircraft up to 150 seats and the leading exporter of high value-added products to Brazil. The company has industrial units, offices, service centers and parts distribution, among other activities, across the Americas, Africa, Asia and Europe.
It is the largest regional air transport group in the world. In 2019, he was responsible for boarding approximately 45 million passengers on 2,300 daily flights to destinations in the United States, Canada and Mexico. The company works in partnership with the main American airlines: American Airlines, Delta, United and Alaska.
Founded in 1952 and currently linked to the Ministry of the Economy, BNDES is the main instrument used by the Federal Government of Brazil to promote long-term investments in the Brazilian economy. Its actions focus on the socio-environmental and economic impacts in Brazil. The bank offers special conditions for micro, small and medium enterprises, as well as social investment credit lines for education and health, family farming, basic sanitation and urban transport. In a crisis situation, the bank acts in a countercyclical manner and helps formulate solutions for the resumption of economic growth.
Embraer SA published this content on 07 October 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 07 October 2021 11:06:05 AM UTC.