Sao Jose dos Campos - SP - October 7, 2021 – The Brazilian Development Bank (BNDES) approved financing to export 24 Embraer E175 commercial jets to SkyWest Airlines, the world's largest regional aviation company, based in Utah in the U.S. The deal strengthens Brazil’s industry at a time when it is still feeling the effects of the COVID-19 pandemic and boosts the presence of high-tech Brazilian products in the world's largest and most competitive aviation market. The deliveries began in August and will continue until April 2022.

The financing of over US$ 500 million (more than R$ 2.6 billion), is in line with operations carried out by export credit agencies in countries with cutting-edge aeronautical industries. The aeronautical sector is considered strategic by the nations due to aspects such as advanced technology, continuous innovation, and highly skilled workers. Export credit agencies operate to complement the private credit market, doing so more intensely in times of crisis, which is clear in the history between the BNDES and Embraer.

Bruno Aranha, director of Productive and Socio-environmental Credit at BNDES, stresses the institution’s importance in financing exports: “BNDES has an established and significant presence in Brazil’s export system, having an anticyclical performance that has maintained Brazilian exporters over more than 25 years. This deal is another important step for BNDES, supporting Embraer in the resumption of sales growth in the context of the greatest challenge ever faced in the history of the aeronautical sector, thus ensuring the maintenance of qualified jobs in the country,” he says.

The E175, which carries up to 88 passengers, was one of the models least impacted by the effects of COVID-19. Currently, there are more than 600 E175s in operation worldwide, making it the leader in its segment.

Despite the pandemic effects, the American market has recovered. In May 2020, the number of flights in operation was only 24% of what it was in May 2019. However, that rate increased to 80% in May of 2021. With economic recovery on the horizon, BNDES and Embraer intensified their operations.

“As the world’s largest owner/operator of the Embraer E175 aircraft, SkyWest has been very pleased with BNDES’s support as our primary financing partner for this important plane,” said Robert Simmons, SkyWest’s Chief Financial Officer. “BNDES has epitomized partnership through years of growth in a variety of economic environments.”

“BNDES’ support is essential as the air transport market recovers in the US, the main market for our Embraer 175 jet. Regional aviation has played an extremely important role in the recovery of commercial flights around the world and this has benefited Embraer jets, which are the most efficient in the industry. We are the largest exporter of high-value goods in Brazil and have been able to implement and offer smart and flexible financing solutions for our customers, in line with the growth strategy we project for the next few years,” says Antonio Carlos Garcia, Embraer's Executive Vice President, Financial and Investor Relations.

The financing will be provided via BNDES Exim Post-shipment, transferred in Brazilian reals (R$) in Brazil to the exporter (Embraer). In this type of operation, the importer takes the commitment to pay BNDES in dollars, bringing this foreign currency into Brazil. Credit insurance covering commercial, political, and extraordinary risks is included in the transaction.