Brazilian Development Bank approves BRL 1.3 billion finance for Embraer jets export to Alaska Airlines

The Brazilian Development Bank (BNDES) has granted financing of R$1.3 billion for the export of eleven Embraer E-175 commercial jets to Alaska Airlines, the fifth largest airline in the USA. The funding will cover a portion of Alaska’s investment in the aircraft purchase. Disbursements will be made in Brazilian reais in Brazil, directly to Embraer.

According to BNDES, the aircraft will be delivered to Horizon, a subsidiary of Alaska, between 2023 and 2024 as per the commercial contract previously signed with Embraer. This financing marks BNDES’ first aircraft export financing for Alaska Airlines and Horizon Air Industries.

Horizon, acting as the importer, will commit to paying BNDES in dollars, generating foreign exchange for Brazil in that currency.

BNDES has supported Embraer’s exports since 1997, providing competitive conditions similar to those offered by international competitors who rely on financing from development banks and export credit agencies in their respective countries.

“The BNDES has been a long-standing partner of Embraer in supporting aircraft exports, allowing the company to maintain highly skilled jobs in Brazil, generating significant investments, and strengthening Brazil’s position in the international market,” stated BNDES president Aloizio Mercadante.

Mercadante further emphasized that support for exports is essential to enhance national competitiveness, create jobs, and contribute to the trade balance.

BNDES sees the aeronautical sector as strategic, given its richness in technological content, innovation, and workforce training potential. As customary in direct operations within the aeronautical industry, the aircraft will be the primary collateral for the financing.

Embraer’s finance and investor relations vice president, Antonio Carlos Garcia, highlighted the strategic importance of exporting these aircraft for Embraer. He acknowledged the fundamental role played by BNDES in facilitating the more significant international presence of Brazilian products with high added value, such as the aeronautical sector.

Source: Valor Econômico

To read the original news report, see: https://valor.globo.com/empresas/noticia/2023/06/19/bndes-aprova-financiamento-de-r-13-bi-para-exportacao-de-11-jatos-da-embraer.ghtml

Sharing is caring!