BNDES approves R$ 1.3 billion for new Embraer exports – 06/19/2023 – Panel SA

The BNDES approved R$1.3 billion in financing for exports of 11 Embraer commercial jets to Alaska Airlines, the fifth largest airline in the USA. The planes were given as collateral.

The company is a new Embraer customer. It serves more than 120 destinations across North and Central America, including Hawaii, Canada, Mexico, Costa Rica and Belize. The aircraft will still be delivered between 2023 and 2024 to Horizon, a subsidiary of Alaska.

The financing will cover a portion of Alaska’s total investment in the purchase of the planes, and will be provided through BNDES Exim Post-Shipment, with disbursements made in reais in Brazil in favor of Embraer.

Horizon undertook to make payments in dollars to the BNDES, in order to protect the bank from exchange rate fluctuations.

The relationship between BNDES and Embraer has lasted 26 years and allowed exports of 1,281 aircraft in the period. It is part of a government program to ensure the competitiveness of the Brazilian manufacturer on a global level. Several other countries maintain similar programs.

The aeronautical sector is considered strategic due to its high added value in technological content, innovation and workforce training.

“The BNDES is a historic partner of Embraer in supporting aircraft exports, allowing it to maintain high-skill jobs in Brazil, generating significant investments and strengthening Brazil’s position in the international market”, said the bank’s president, Aloizio Mercadante. “Support is essential to boost national competitiveness, generate jobs and contribute to the trade balance.”

With Diego Felix

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