Embraer has today announced the closing of a Framework Agreement for a credit operation aimed at helping its customers purchase aircraft with the 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.
Commenting on the development, Antonio Carlos Garcia, CFO of Embraer, said: “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.
“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.”
For Fabio Accunzo, Export Finance Head, Brazil and Southern Cone at UKEF: “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.