With the operation, the number of aircraft acquired by SkyWest with financing from the BNDES totals 200 units
The National Bank for Economic and Social Development (BNDES) approved financing for the export of six Embraer E175 commercial jets to SkyWest Airlines, Inc. (SkyWest), the world’s largest regional airline, which began operations in 1972. The aircraft will be delivered to SkyWest later this year as part of the commercial contract previously signed with Embraer.
The financing, in the amount of R$670 million, will be provided by BNDES Exim Post-Shipment, with disbursements in Brazilian Reais in favor of Embraer. SkyWest (the importer) will assume the commitment to pay in dollars to BNDES, generating foreign exchange in this currency for Brazil.
The aeronautical sector is considered strategic due to its high added value in technological content, innovation, and workforce training. This was the second BNDES operation to support Embraer’s exports to SkyWest to count on an innovative guarantee structure, through the Aircraft Non Payment Insurance (ANPI) private credit insurance, provided by the consortium of private insurance companies called Aircraft Financing Insurance Consortium (AFIC).
The first one was done in December 2020, in the amount of about R$400 million. AFIC’s ANPI insurance is led by Marsh, one of the world’s leading brokers and risk consultants. The ANPI insurance policy was underwritten by a consortium of four international insurance groups: AXA XL, AXIS Capital, SOMPO International, and Fidelis Insurance.
The insurance provides that in the event of default by the debtor, the insurers will honor the debt service for the duration of the default. ANPI’s private credit insurance also increases the flexibility and speed of implementation of the financing between the parties for the buyers of Embraer’s aircraft.
BNDES support for Embraer’s exports began in 1997 and provides competitive conditions similar to those of its international competitors, which also rely on financing from development banks and export credit agencies in their respective countries.
*** Translated by the DEFCONPress FYI Team ***