2024-01-03 12:43:07
For the president of the institution, Aloizio Mercadante, financing exports of Embraer aircraft is fundamental for Brazil
The National Bank for Economic and Social Development (BNDES) will finance the export of another 39 Embraer aircraft with approximately R$6 billion. There are three separate contracts with Skywest Airlines, American Airlines and Azorra Aviation Holdings LLC, which total the equivalent of more than R$7 billion in exports of high-technology and high-value-added goods. The information was released on Tuesday, 2, by the bank.
For the president of the institution, Aloizio Mercadante, financing exports of Embraer aircraft is fundamental for Brazil. “The BNDES, as a credit agency for Brazilian exports, has among its objectives to offer conditions that guarantee equal competitiveness to Brazilian exporters in the international market, generating employment and income in Brazil.”
The president of Embraer, Francisco Gomes Neto, stated that the company and BNDES have a “solid and long-term” relationship. And he added: “The support we receive for the export of our aircraft is essential for us to consolidate our growth and expand our global presence.” According to Gomes Neto, BNDES’ actions not only benefit Embraer, but “also contribute to the generation of thousands of high-skilled jobs in Brazil and to the increase in exports of high-value-added products”.
Contracts
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The contract with the airline SkyWest Airlines, Inc. provides for the export of ten Embraer E-175 model E-175 jets (up to 76 passengers), while American Airlines had financing approved by BNDES for the acquisition of up to 11 E-175 jets . The sale of up to 18 jets of the E-195-E2 models (with up to 146 seats) and E-190-E2 (with up to 114 seats), considered the largest and most sophisticated aircraft from the Brazilian manufacturer, was signed with the company Norte -American Azorra Aviation Holdings LLC. Azorra specializes in the acquisition and leasing (financial leasing) of aircraft for the operation of commercial airlines.
In 2023 alone, BNDES approved and contracted seven Embraer export financing operations, totaling 67 commercial aircraft, with up to R$10 billion in financing. Deliveries are scheduled until 2025.
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The bank states that, in addition to promoting the development of the national technological goods industry, aircraft exports expand and maintain highly qualified jobs, in addition to generating important currency for the country’s economy. They are considered strategic operations, aligned with the Brazilian export support policy, with the aim of bringing more competitiveness to Brazilian exports and encouraging the activities of national companies in the international market.
Since 1997, BNDES has financed around US$25.6 billion for the export of 1,300 Embraer aircraft. During the period, the contracted operations enabled the company to compete in the international market on equal terms with its competitors. The bank’s support complements financing provided by the private market.
Credit insurance
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Of the three recently approved operations, two (American Airlines and Azorra) had Export Credit Insurance (SCE) backed by the Export Guarantee Fund (FGE), and will collect approximately R$300 million in new insurance premiums for the bottom. Accounting in nature and linked to the Ministry of Finance, the FGE aims to cover the guarantees provided by the Union in SCE operations.
According to BNDES, insurance guarantees export credit operations against commercial risks (non-payment due to bankruptcy or late payment), political risks (moratoriums, wars, revolutions, among others) and extraordinary risks (natural disasters) that may affect production or the commercialization of Brazilian goods and services abroad.
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