Government support provides a boost to the British aerospace
industry in UKEF’s first deal with leading Brazilian aerospace
manufacturer Embraer, the third largest commercial jet
manufacturer in the world.
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The deal will help Embraer access critical parts, components
and technology from UK suppliers that will enhance its
commercial and defence aircraft programmes.
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This is a part of broader initiatives by both nations to
strengthen trade ties and will promote future collaboration
between UK suppliers and Brazilian manufacturers in
aerospace.
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UKEF provided support by acting as guarantor to the lender,
JP Morgan Chase Bank, N.A., London Branch (“JPMorgan”),
ensuring Embraer benefits from flexible repayment terms.
UK Export Finance, the UK’s export credit agency, has supported
an £89 million loan to Embraer.
This was made possible through partnership with JP Morgan, who
acted as the lending bank and arranger for this deal.
Securing UK exports to this major manufacturer means UK goods and
services will be embedded in aircraft that fly 145 million
passengers globally every year.
UKEF can help overseas buyers access financial support to make
their projects happen, provided they commit to sourcing goods and
services from the UK. This helps open new doors for world-class
British suppliers to trade overseas. Through UKEF, the UK can
also help international buyers access finance and insurance when
it is not available from the private sector.
UKEF has over £3 billion available to help Brazilian buyers
access the finance they need to trade with the UK, with the
ability to provide guarantees in Brazilian Reals so that
Brazilian businesses can access finance in their own currency.
Samir Parkash, interim CEO of UKEF said:
Now, with this UKEF first deal with Embraer, we can export world
renowned British expertise and technology in the aviation and
aerospace industry to Brazil – an economy that was rapid in
recovering pre-pandemic levels of economic activity, that keeps
on growing strong in 2022 and is an important trading partner to
the UK. In fact, in the four quarters up to Q1 2022 trade in
goods and services between the two nations increased by 18%
year-over-year reaching £6.5bn.
Antonio Carlos Garcia, Chief Financial Officer of
Embraer, said:
This first Embraer deal with UKEF shows the success of our
strategy to diversify our suppliers and financial partners. We
are always looking for actions that improve the profile of our
debt, and this operation is another step in that direction.
John Meakin, Global Head of Export & Agency Finance
at JP Morgan, said:
We are delighted to support a strategically important global
client in the aviation sector to meet their objectives and
partner with UKEF in delivering commercially relevant financing.
The financing structure is flexible and innovative, and it would
not have been possible without the commitment of all parties
involved in rolling out this milestone program.
