Brazilian aircraft manufacturer Embraer has announced that they are closing on a Framework Agreement for a credit operation.
This framework aims at helping its clients purchase an aircraft with the support from UK Export Finance of UKEF.
UKEF is an arm of the British government, which focuses on financing local exports. In which the British government will be the credit guarantor for future financial transactions
The initiative aid is tied to the volume of materials and components imported by Embraer with roots in the United Kingdom. This will inherently support the British economy and create jobs.
Antonio Carlos Garcia, CFO of Embraer said: “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.”
Lord Malcom Offord, UK Minister for Exports added: “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.”
He furthered: “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, also commented on the new agreement:
“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,” he said.
Embraer and UKEF
With the two entities working together, this will definitely benefit both Embraer and UKEF. This includes the development of the aeronautical industry in Brazil and the United Kingdom, and also giving Embraer customers more credit options.
This round becomes the second partnership between Embraer and the UKEF in a year! In fact, last year both parties announced a US$100 million credit transaction to aid in the purchase of Embraer supplies made in the UK.
UKEF is the United Kingdom’s government arm of the export credit agency working alongside the UK’s Department for Business and Trade forming a crucial actor in the department’s strategy and operations.
Not only Embraer is a heavy weight of UKEF’s clients, the organization works with more than 100 private credit insurance and lenders to help the country address its export finance or bank guarantee to promote international trade seamlessly.
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