The Brazilian National Bank for Economic and Social Development (BNDES) has concluded the financing contract for the export of 32 Embraer E175 commercial jets to American Airlines.
Worth around R$4.5 billion, the operation takes place through BNDES Exim Post-shipment, a direct credit line from the bank to commercialisation of national goods destined for export.
Francisco Gomes Neto, president and chief executive of Embraer, said: “This financing will contribute to accelerating the production and export of our aircraft to American Airlines and boosts Brazil’s neo-industrialisation process, increasing the country’s innovation and competitiveness.
“BNDES, with its strategic vision, has been fundamental to the development of national industry through financing exports, access to working capital resources and investment in research and development.”
Earlier in 2024, American Airlines announced a firm order for 90 E175 jets, with purchase rights for an additional 43 aircraft. The jets will be delivered with 76 seats.
If all purchase rights are exercised, the agreement will exceed US$ 7 billion in value, according to list price. The value of the firm orders was included in Embraer’s backlog in the first quarter of 2024.
Aloizio Mercadante, president of BNDES, said: “BNDES is Embraer’s largest partner and has supported the export of more than 1,300 aircraft since 1997. This is financing that exceeds the sum of US$25 billion over the years.
“The maintenance of this support, under president Lula’s government, contributes to the Brazilian company remaining one of the three largest in the world in aircraft production, generating qualified jobs and income in Brazil.”
In addition to exports, BNDES also supports Embraer‘s innovation investment plan. In February, the Bank approved financing of R$500 million (US$90 million), through BNDES Mais Inovação, for the company to develop new products, processes, and digital technologies for gains in efficiency, productivity, and also for sustainable air mobility, with a focus on energy transition and carbon emission reduction.
José Luís Gordon, director of productive development, innovation, and foreign trade of BNDES, said: “BNDES is committed to innovation in the Brazilian aerospace industry to make it increasingly competitive and sustainable, with the capacity to expand markets and develop new technologies, aligned with the Brazilian federal government’s Mais Produção Plan, in the axis of a more exporting and innovative industry focused on high value-added products.”