The National Bank for Economic and Social Development (BNDES) announced today (10) that it has approved financing for the export of six Embraer E175 commercial jets to the American company SkyWest Airlines (SkyWest), the world’s largest regional air transport company, whose operations started in 1972. According to the bank, the aircraft will be delivered later this year under the commercial contract previously signed with Embraer.
According to the development bank, the R$ 670 million financing will be provided through the BNDES Exim Post-Shipment, with disbursements made in reais in Brazil in favor of Embraer.
SkyWest (importer) will assume the commitment to pay in dollars to BNDES, generating foreign exchange for Brazil. The aeronautical sector is considered strategic due to its high added value in technological content, innovation and training of manpower.
“This was the second BNDES operation to support Embraer’s exports to SkyWest to have an innovative guarantee structure through the company’s private credit insurance. Aircraft Non Payment Insurance (ANPI) provided by the consortium of private insurance companies called Aircraft Financing Insurance Consortium (AFIC). The first was carried out in December 2020 in the amount of about BRL 400 million”, said the BNDES.
The insurance provides that, in the event of default by the debtor, the insurers will honor the debt service for the duration of the default (default).
Financing
ANPI’s private credit insurance also increases the flexibility and speed of implementation of financing between the parties for purchasers of Embraer aircraft.
According to the note, BNDES support for Embraer’s exports started in 1997 and enables competitive conditions similar to those of its international competitors, which also rely on financing from development banks and export credit agencies (Export Credit Agencies) of their respective countries.
A BNDES customer since 1998, and Embraer since 1986, SkyWest is the operator of the world’s largest fleet of the E175 jet, with 232 E175 aircraft. Since 1998, BNDES has entered into ten financing agreements with SkyWest for the acquisition of 200 aircraft, of which 18 EMB120s and 175 E175s have already been delivered and 7 E175s that are yet to be delivered.
