Brazilian Development Bank Approves Financing for Export of Six E175s to SkyWest
(11/10/22)
The Brazilian Development Bank (BNDES) has
approved financing for the export of six Embraer E175 commercial
jets to the north American regional carrier SkyWest Airlines.
The financing, in the order of R$670 million, will
be through BNDES Exim Post-shipment, with disbursements made in
Reals in Brazil in favor of Embraer.
SkyWest (importer) will assume the commitment to
pay in dollars to BNDES, generating foreign currency for Brazil.
The aircraft will be delivered through the end of the year to
SkyWest.
Embraer E175
This is the second financing tranche with BNDES
for the sale of Embraer aircraft exports to SkyWest Airlines using
the innovative Aircraft Financing Insurance Consortium (AFIC)
offering from Marsh, one of the world’s leading insurance brokers and risk
advisors. The first financing was executed in December 2020 in
amount of R$ 400 million.
The Aircraft Non-Payment Insurance (ANPI) policy
is underwritten by four international insurance groups: AXA XL,
AXIS Capital, SOMPO International and Fidelis Insurance.
The ANPI
policy provides that, in the event of default by the debtor, the
insurers make all scheduled payments to the lender until all
outstanding principal is repaid.
The AFIC insurance offering also
increases the flexibility and speed of implementation of financing
between the parties for buyers of Embraer aircraft.
BNDES’s support for Embraer’s exports began in
1997 and provides conditions of competitiveness similar to those
of its international competitors, which also provide financing
from the development banks and export credit agencies (Export
Credit Agencies) of their respective countries.
A customer of BNDES since 1998, and of Embraer
since 1986, SkyWest operates the world’s largest fleet of the E175
jet consisting of 232 E175 aircraft.
BNDES, since 1998, has
provided 10 different financing facilities to SkyWest covering up
to 200 aircraft, comprised of 18 delivered EMB120 aircraft, 175
delivered E175 aircraft and 7 to be delivered E175 aircraft.
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