Brazil’s National Bank for Economic and Social Development (BNDES) has approved new financing for Embraer to support the production and export of commercial aircraft developed by the company.
Through a direct bank credit line for the promotion of domestic export goods, the Brazilian aircraft manufacturer will receive some 2.2 billion reals (400 million dollars) in financial support.
Founded in 1952 and now linked to the Ministry of Economy, the National Bank for Economic and Social Development is the main instrument used by the federal government to promote long-term investments in the Brazilian economy. Over the past 25 years, it has provided Embraer with some 25 billion dollars in financing.
In a press release, the company stressed that “the aviation sector is considered strategic due to the high technology involved, the employment of qualified labor, and the ability to generate innovations with positive impacts on the country’s economy”.
Currently, Embraer is one of the largest manufacturers of commercial and business aircraft in the world. In addition, its products for the defence sector have seen strong growth in recent years.
“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 executing our growth plan”, said Antonio Carlos García, Embraer’s CFO.
“Credit operations are important for the resumption of aircraft production by Embraer at pre-pandemic levels”, said Bruno Aranha, Director of the National Bank for Economic and Social Development. In addition, Aranha emphasised the support “to the aeronautical industry and the export of Brazilian aircraft”.
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