Brazil state bank to fund Embraer aircraft exports to SkyWest
10/10/2022 11:00
RIO DE JANEIRO, Oct 10 (Reuters) - Brazilian state
development bank BNDES and planemaker Embraer SA EMBR3.SA have
entered a deal for the lender to fund exports of six E-175 jets
to U.S.-based carrier SkyWest Inc SKYW.O , the bank's managing
director told Reuters.
Bruno Aranha said in an interview that the loan was modeled
as a post-shipment export credit, through which BNDES will fund
the exports and SkyWest assume the debt.
It has also involved four private insurers - AXA XL, Axis
Capital AXS.N , Sompo International 8630.T and Fidelis
Insurance - Aranha said, as the state-run bank looks to increase
transactions secured by private companies.
"We think this could be a trend from now on," he said,
noting they could be often used for Embraer's high added value
shipments.
The latest loan will mature in 12 years, according to
Embraer. Financial details on the transaction were not
disclosed.
Aranha said the bank could also help funding exports of
Embraer's KC-390 military aircraft ahead, though noting that
such deals could take longer to be completed as they would
involve foreign nations and their public sectors.
"But we can be a tool to support the KC exports to other
countries, just like we do with jets," he said.
(Reporting by Rodrigo Viga Gaier)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))