Embraer and the Brazilian government development bank (BNDES) signed an agreement to finance the export of six E175 regional jets acquired by Skywest.
According to the Brazilian airframer, the agreement follows an export credit model that includes four private insurers as guarantors, called the Aircraft Financing Insurance Consortium (AFIC).
The financing amount is around $130 million and is not the first done between the bank and Embraer. In December, a loan to the same customer was closed for $77 million.
The six aircraft will be delivered by the end of the year and are already on Embraer’s backlog.
In an interview with a Brazilian outlet, BNDES director Bruno Aranha also revealed that the financing could also be used in negotiations for the KC-390, an airlifter that competes with the Lockheed Martin C-130J turboprop.
SkyWest has the largest fleet of E175 jets in the world, with 232 aircraft. BNDES, in turn, has already supported the sale of more than 200 Embaer aircraft, including 18 EMB 120 turboprops and 175 E175 jets.
Progress Delivery Payment
In September, the Brazilian manufacturer had signed a Memorandum of Understanding with the US Apollo Funds to offer innovative financing products to its regional jet customers. The group will make available to Embraer up to $1.5 billion of funds to be used by buyers of the company’s aircraft.
One of them was Porter Airlines, a Canadian airline that acquired 50 E195-E2 jets. Six of these planes will be financed through Apollo in a sale and lease modality called PDP, an acronym for “Progress Delivery Payment”.
