Brazilian bank BNDES facilitates major aircraft deal
The Brazilian National Bank for Economic and Social Development (BNDES) has finalised a financing contract worth approximately R$4.5 billion to support the export of 32 Embraer E175 jets to American Airlines. The financing is part of BNDES’s Exim Post-shipment programme, which aids the export of Brazilian goods.
The deal was announced at Embraer’s headquarters, attended by high-profile officials, including Brazilian President Luiz Inácio Lula da Silva.
This financing will bolster Brazil’s neo-industrialisation by accelerating aircraft production and exports, enhancing innovation, and competitiveness.
American Airlines has a firm order for 90 E175 jets, with an option for 43 more, potentially exceeding US$7 billion.
BNDES has been crucial in supporting Embraer, financing over 1,300 aircraft exports since 1997, amounting to over US$25 billion. BNDES also recently approved R$500 million for Embraer’s innovation initiatives focused on sustainable air mobility and carbon emission reduction.
Quotes
- Francisco Gomes Neto, CEO of Embraer: “This financing boosts our aircraft production and export, contributing to Brazil’s innovation and competitiveness.”
- Aloizio Mercadante, President of BNDES: “BNDES’s support has maintained Embraer as a top global aircraft producer, generating qualified jobs in Brazil.”
- José Luís Gordon, BNDES Director: “BNDES is dedicated to making the Brazilian aerospace industry competitive and sustainable, in line with the federal government’s goals.”
Not sure why Virgin Australia’s owners and backers have approved these, as they had them before and were sent back mainly because it was not proving to be viable for them!! Not sure what the difference is now