The National Bank for Economic and Social Development (BNDES) announced this Friday (19), in São José dos Campos, in the interior of São Paulo, the conclusion of the financing contract for the export of 32 Embraer E175 commercial jets to American Airlines. The operation, worth R$ 4.5 billion, will be through the Exim Post-Shipment direct credit line, aimed at the commercialization of national goods destined for export.
During the announcement, President Luiz Inácio Lula da Silva highlighted the importance of Embraer to the country. “Embraer has been a source of national pride since I was president of the union in the 1980s. It is not every day that the BNDES has the courage to lend R$4.5 billion to finance aircraft. This is a political decision made by the government. We will continue to finance Brazilian exports, because in this way we also finance jobs, salaries, and the accumulation of technological knowledge and intelligence,” he stated.
Embraer President and CEO Francisco Gomes Neto said the BNDES financing will help accelerate the production and export of the company’s aircraft to American Airlines.
According to him, the financing “drives Brazil’s neo-industrialization process, increasing the country’s innovation and competitiveness. BNDES, with its strategic vision, has been fundamental to the development of national industry through export financing, access to working capital resources and investment in research and development.”
Earlier this year, American Airlines announced a firm order for 90 E175 jets, with the right to purchase an additional 43 of the model. The aircraft will be delivered with 76 seats. If all purchase rights are exercised, the deal will be worth more than US$7 billion. The value of the firm orders was included in Embraer’s first-quarter backlog.
BNDES
Since 1997, BNDES, Embraer’s largest partner, has supported the export of more than 1,300 aircraft. “These are financings that exceed the sum of US$ 25 billion over the years. The maintenance of this support, under President Lula’s government, helps the Brazilian company continue to be one of the three largest aircraft manufacturers in the world, generating qualified jobs and income in Brazil,” said the bank’s president, Aloizio Mercadante.
In addition to financing exports, BNDES also supports Embraer in its investment plan for innovation. In February of this year, the institution approved financing in the amount of R$500 million, through the BNDES Mais Inovação program, for the development of new products by the company, as well as digital processes and technologies for efficiency and productivity gains, and also for sustainable air mobility, with a focus on energy transition and reduction of carbon emissions.
According to the bank, countries with cutting-edge aeronautical industries have historically financed their domestic manufacturers on a long-term basis through development banks and export credit agencies. In Brazil, this role is played by BNDES, which complements private financing, thus enabling Embraer to compete in the foreign market on equal terms with its competitors.
Embraer
Headquartered in São José dos Campos, Embraer operates in the commercial aviation, executive aviation, defense and security, and agricultural aviation segments. The company not only designs, develops, manufactures, and markets aircraft and systems, but also provides after-sales services and support to customers. Since its founding in 1969, Embraer has delivered more than 9,000 aircraft.
The company is a leader in the manufacture of commercial jets with up to 150 seats and the main exporter of high value-added goods in Brazil, with industrial units, offices, service and parts distribution centers, among other activities, in the Americas, Africa, Asia and Europe.
