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Montevideo, March 1st 2024 - 22:01 UTC

 

 

UK Export Finance support for Brazil's Embraer

Thursday, November 23rd 2023 - 14:12 UTC
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 On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 145 million passengers a year. (Pic Fabrizio Berni) On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 145 million passengers a year. (Pic Fabrizio Berni)

Brazil's giant aircraft industry Embraer announced the closing of a Framework Agreement for a credit operation aimed at helping its customers purchase aircraft and air industry supplies with support from UK Export Finance (UKEF). UKEF is a British government agency focused on financing local exports, which will be the credit guarantor for future financial transactions.

This support is bound by the volume of materials and components imported by Embraer with origins in the United Kingdom and has collaboration opportunities with the potential to increase levels of assistance. The first stage of the agreement is expected to be in the range of US$ 60 million.

“This new partnership is an important step for Embraer, as it represents another purchasing option for our customers, increasing and diversifying the company’s range of financial solutions. Furthermore, UKEF is one of the largest export support agencies in the world and reinforces the United Kingdom’s support for our company”, said Antonio Carlos Garcia, CFO of Embraer.

 “This is yet another win for our world-class aerospace sector, placing UK suppliers at the front of the queue to stock one of the largest aircraft manufacturers in the world“, said Lord Offord, UK Minister for Exports. “The deal will not only provide a welcome boost to existing suppliers, but also encourage even more purchases from UK businesses, boosting high wage and high skill jobs across the country.”

Fabio Accunzo, Export Finance Head - Brazil and Southern Cone at UKEF, said: “This agreement with Embraer is an important milestone in deepening the partnership with the UK Government. UK Export Finance (UKEF) can support projects in Brazil of any size and across most sectors, providing financial support for the procurement of solutions from the UK's world class supply chain. UKEF's offer is a complementary source of long-term financing alongside traditional sources in Brazil, enabling competitive and flexible terms for buyers with repayment terms typically over 10 years and up to 22 years in renewables and clean growth sectors.”

The operation with UKEF provides several benefits, such as the development of the aeronautical industry in both countries and more credit options for Embraer’s customers. This is the second partnership between Embraer and the UKEF in one year. In 2022, both announced a US$ 100 million credit transaction to finance purchases of supplies made by Embraer in the UK.

 Embraer is a global aerospace company headquartered in Brazil. It manufactures aircraft for commercial and executive aviation, defense and security and agricultural customers. The company also provides after-sales services and support through a worldwide network of wholly owned entities and authorized agents.

 Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft. On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 145 million passengers a year.

 Embraer is the leading manufacturer of commercial jets up to 150 seats and is the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service and parts distribution centers across the Americas, Africa, Asia and Europe.

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