BNDES finances production of Embraer aircraft for export

This is a machine translation of Embraer's press release

São José dos Campos – November 14, 2022 - The National Bank for Economic and Social Development ( BNDES ) has approved financing for Embraer SA for the production and export of commercial aircraft manufactured by the company. The operation, in the order of R$ 2.2 billion, will be carried out through the BNDES Exim Pré-embarque, the Bank's direct credit line for the production of domestic goods intended for export.

The BNDES operation reinforces the funding of a revolving credit recently announced by Embraer of US$ 650 million with a group of foreign financial institutions. The consummation of the financing is subject, among others, to the fulfillment of prior conditions established by the BNDES and the execution of the respective contract.

“The credit operations are important for the resumption of aircraft production by Embraer at pre-Covid-19 pandemic levels and also reinforce the strategic partnership between BNDES and Embraer started in 1997, consolidating BNDES support to the aeronautical industry and the export of Brazilian aircraft”, highlighted Bruno Aranha, director of BNDES”.

“The longevity of the partnership between Embraer and BNDES illustrates the strength of this relationship, which encourages exports from Brazil and benefits society as a whole. Together with other actions that we are carrying out with Brazilian and international financial institutions, this operation reinforces our credibility for access to financial resources that will contribute to the execution of our growth plan”, said Antonio Carlos Garcia, CFO of Embraer.

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 of defense. Brazil is a country that has the capacity to design, manufacture and export commercial, executive, defense and agricultural aircraft worldwide.

Since 1997, the year the BNDES first supported Embraer, the Bank has financed around US$ 25 billion in exports of its aircraft, making it possible to export more than 1,275 units to airlines around the world. During the period, the contracted operations enabled the Brazilian manufacturer to compete in the foreign market on equal terms with its competitors.

About BNDES

Founded in 1952 and currently linked to the Ministry of Economy, the BNDES is the Federal Government's main instrument for promoting long-term investments in the Brazilian economy. Its actions focus on the socio-environmental and economic impact in Brazil. The Bank offers special conditions for micro, small and medium-sized companies, in addition to lines of social investment, directed towards education and health, family agriculture, basic sanitation and urban transport. In crisis situations, the Bank acts in an anti-cyclical manner and assists in the formulation of solutions for the resumption of economic growth.

About Embraer

A global aerospace company headquartered in Brazil, Embraer does business in the areas of Commercial and Executive Aviation, Defense & Security and Agricultural Aviation. The company designs, develops, manufactures and markets aircraft and systems, providing after-sales service and support to customers.

Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft. On average, every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting more than 145 million passengers a year.

Embraer is the main manufacturer of commercial jets with up to 150 seats and the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service centers and parts distribution, among other activities, in the Americas, Africa, Asia and Europe.