Rio de Janeiro – Brazil’s state development bank BNDES has approved a financing of BRL 1.3 billion (USD 270 million) for the export of eleven Embraer E-175 commercial jets to US’s Alaska Air Group. The airline operates a route network covering 120 destinations in North and Central America, including Hawaii, Canada, Mexico, Costa Rica, and Belize, and it owns subsidiaries Alaska Airlines and Horizon Air.
The aircraft will be delivered to Horizon between 2023 and 2024. This financing marks BNDES’ first aircraft export financing for Alaska Airlines and Horizon Air Industries. Horizon, acting as the importer, will commit to paying BNDES in dollars, generating foreign exchange for Brazil in that currency.
The bank sees the aeronautical sector as strategic, given its high value-added technological content, innovation, and workforce training potential. As customary in direct operations within the aeronautical industry, the aircraft will be the primary collateral for the financing.
Support
The support of BNDES to the export from Embraer provides a competitiveness level similar to its international competitors that are financed by the development banks and export credit agencies of their respective countries.
BNDES president Aloizio Mercadante highlighted the long-standing partnership between the bank and Embraer in supporting aircraft exports. Mercadante added that support for exports is essential to enhance national competitiveness, create jobs, and contribute to the trade balance.
Translated by Guilherme Miranda
