Brazilian bank approves half a billion dollars to boost Embraer exports

The Brazilian National Development Bank (BNDES) has approved the financing of BRL 2.4 billion (USD 480 million) to support the export of Embraer aircraft. Of this amount, approximately BRL 1.4 billion is earmarked for the sale of fourteen E-175 aircraft to Republic Airways, a U.S. airline that operates exclusively Brazilian-made aircraft.

Republic Airways is one of the world’s leading operators of Embraer E-175 regional jets. The airline operates 900 daily flights to nearly 80 cities in the U.S., Canada, and the Caribbean. Operating under the banners of American Eagle, Delta Connection and United Express, Republic Airways enjoys fruitful partnerships with American Airlines, Delta Air Lines, and United Airlines.

The financing announcement was made during a seminar co-hosted by BNDES and the Defense Ministry.

An additional BRL 1 billion of the financing is earmarked for the production of aircraft for future exports. These financing operations will be carried out through BNDES Exim Post-Shipment (commercialization) and BNDES Exim Pre-Shipment (production), both well-established BNDES programs that support Brazilian companies in different phases of their export ventures.

As the world’s third largest aircraft manufacturer, behind Boeing and Airbus, Embraer delivered a total of 47 aircraft in the second quarter of 2023 — 17 commercial aircraft and 30 business jets (including 19 light and 11 medium). This delivery volume represents a significant 47 percent increase over the same period in 2022.

Embraer recorded a 27 percent increase in net revenues compared to the previous year, reaching BRL 6.36 billion (USD 1.3 billion). The company also reduced its net loss by an impressive 87.2 percent to BRL 92.6 million (USD 18.8 million) in the second quarter.

In addition to the 14 aircraft delivered to Republic Airways this year, BNDES financed the sale of three Embraer aircraft to Egypt’s CIAF in April and another 11 to U.S. carrier Alaska Airlines in June. Notably, BNDES disbursements to the Brazilian aircraft manufacturer amounted to BRL 778 million from January to September.

Since its first support for Embraer in 1997, the BNDES has financed approximately BRL 25.4 billion for the manufacturer’s aircraft exports. The development bank’s support complements financing from the private sector.

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