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© Reuters. FILE PHOTO: Brazilian aircraft manufacturer Embraer unveils its new regional jet E-175, in Sao Jose dos Campos, north of Sao Paulo March 12, 2014. REUTERS/Paulo Whitaker/File Photo
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RIO DE JANEIRO (Reuters) – Brazilian state development bank BNDES and planemaker Embraer SA (NYSE:) have entered a deal for the lender to fund exports of six E-175 jets to U.S.-based carrier SkyWest (NASDAQ:) Inc, the bank’s managing director told Reuters.
Bruno Aranha said in an interview that the loan was modeled as a post-shipment export credit, through which BNDES will fund the exports and SkyWest assume the debt.
It has also involved four private insurers – AXA XL, Axis Capital (NYSE:), Sompo International and Fidelis Insurance – Aranha said, as the state-run bank looks to increase transactions secured by private companies.
“We think this could be a trend from now on,” he said, noting they could be often used for Embraer’s high added value shipments.
The latest loan will mature in 12 years, according to Embraer. Financial details on the transaction were not disclosed.
Aranha said the bank could also help funding exports of Embraer’s KC-390 military aircraft ahead, though noting that such deals could take longer to be completed as they would involve foreign nations and their public sectors.
“But we can be a tool to support the KC exports to other countries, just like we do with jets,” he said.
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