The Brazilian Development Bank (BNDES), the export-import bank of Brazil, and Brazil-based Embraer [NYSE: ERJ] are in the advanced stages of discussions to secure a financing package worth US$1 billion for the export of new aircraft this year. The package will finance a variety of aircraft, mostly regional...
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The Brazilian Development Bank (BNDES), the export-import bank of Brazil, and Brazil-based Embraer [NYSE: ERJ] are in the advanced stages of discussions to secure a financing package worth US$1 billion for the export of new aircraft this year.
The package will finance a variety of aircraft, mostly regional jets such as the ERJ145 and ERJ135, Embraer spokesman Doug Oliver told CRAN.
"It certainly adds financing options in a market that has been a bit thin the last couple of years," Oliver said. "Of course, we'll continue to use traditional lending sources -- banks, financial institutions, investment companies, companies like GECAS [General Electric Capital Aviation Services]."
Oliver was not sure how many aircraft the financing package would bankroll. But the package is designed to cover existing contracts for new aircraft and new contracts for aircraft with delivery scheduled for this year, he said.
This initiative is in line with Brazilian President Luiz Inacio Lula da Silva's directive to support Brazilian high technology exports. The partnership between BNDES and Embraer will allow the resumption of new financing operations, following an interruption of more than two years. Oliver was unsure why work on new financing was suspended for so long.
Founded in 1952, BNDES is responsible for the medium and long-term investment credit policy of the Brazilian government, its controlling stockholder. It also finances exports and the commercialization of machinery and equipment, and plays a significant role in strengthening the equity and financial structure of private companies, including foreign companies set up in Brazil, and in the development of the capital market in Brazil.
The activities of BNDES are aimed at financing investments that increase the overall level of competitiveness of the Brazilian economy and improve the standard of living of the Brazilian population. BNDES had total assets of US$48.6 billion as of Dec. 31, 2001, and disbursements of US$10.9 billion that year.
Embraer has designed, developed, manufactured and sold aircraft for the global airline, defense and corporate markets for 34 years. With headquarters in Sao Jos� dos Campos, state of Sao Paulo, and offices in Australia, China, France, Singapore and the United States, Embraer had a total workforce of 12,348 people at the end of the first quarter 2003. Embraer is among Brazil's leading exporting companies. As of June 30, 2003, Embraer's firm order backlog totaled US$10.3 billion.
>>Contact: Doug Oliver, Embraer, 954-359-3414.<<
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