Embraer 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.
“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”, said Antonio Carlos Garcia, CFO of Embraer.
“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.”
Fabio Accunzo, Export Finance Head – Brazil and Southern Cone at UKEF, said: “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.
UKEF is the UK’s export credit agency and a government department, working alongside the Department for Business and Trade as an integral part of its strategy and operations.
UKEF works with over 100 private credit insurers and lenders to help UK companies access export finance (the particular class of loans, insurance policies or bank guarantees that enable international trade to take place as easily and securely as possible). UKEF exists to complement not compete with the private sector.
UKEF helps UK companies to:win export contracts by providing attractive financing terms to their buyers, fulfil contracts by supporting working capital loans, get paid by insuring against buyer default.
UKEF can support exports for any size of company and across all sectors, from capital goods to services and intangibles such as intellectual property.
About Department for Business and Trade (DBT)
DBT provides trade and investment services and practical support. We help UK companies succeed in Brazil, and Brazilian companies set up and invest in the UK.
DBT offers expertise and contacts through its extensive network of specialists in the UK, and staff in the: British Embassy in Brazil and Consulates General in São Paulo, Belo Horizonte, Recife, and Rio de Janeiro.