The National Bank for Economic and Social Development (BNDES) announced today (14) the approval of financing for Embraer for the production and export of commercial aircraft. The operation should revolve around R$ 2.2 billion. The resources will come from the BNDES Exim Pré-embarque, a credit line created by the bank and aimed at the production of domestic goods destined for export.
According to a note released by the BNDES, the operation contributes to Embraer being able to resume aircraft production at levels prior to the covid-19 pandemic. The text emphasizes, however, that the consummation of the financing is subject to the fulfillment of established preconditions and the signature of the respective contract.
“The aviation sector is considered strategic due to the high technology involved, the use of qualified labor 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 products Brazil is a country that has the capacity to design, manufacture and export worldwide commercial, executive, defense and agricultural aircraft”, adds the note.
The text also records that the new operation reiterates the bank’s support for the aeronautical industry and recalls that the BNDES has been a partner of Embraer since 1997, having already financed around US$ 25 billion in exports. These resources would have enabled the production and export of more than 1,275 units to airlines around the world.
Founded in 1969 by the Federal Government, Embraer was privatized in 1994. The Brazilian government remains a shareholder and has veto rights over some strategic decisions. The company has produced over 8,000 aircraft and is currently the leading manufacturer of commercial jets with up to 150 seats.
Recently, there were negotiations for its commercial aviation business to be encompassed by a new company: a joint venture with an 80% share of the North American Boeing and 20% of Embraer. In 2020, however, the boeing dropped out of the partnership.
