UK Export Finance (UKEF) has signed an agreement with Embraer
which is expected to increase the Brazilian aircraft
manufacturer’s spend on UK suppliers. The export credit agency
issued a first, £89 million financing guarantee to Embraer in
2022 to support contracts with UK exporters.
This new agreement will now see UKEF link the value of future
credit guarantees to the value of Embraer’s spend on the UK
supply chain.
This is expected to boost the firm’s annual spend on UK goods and
services, which already stands at approximately $60 million.
Embraer is the world’s third largest civil passenger aircraft
manufacturer and delivered 159 commercial and executive aircraft
last year alone. This new agreement will help UK firms –
including over 120 existing suppliers – access the opportunities
created by one of Latin America’s largest manufacturers.
Embraer intends to meet a quarter of its total energy needs with
Sustainable Aviation Fuel (SAF) by 2040.
, UK Minister for Exports,
said:
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.
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.
Antonio Carlos Garcia, Chief Financial Officer at
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.
UKEF has over £4 billion available to help Brazilian buyers
access finance which will help them trade with the UK; it can
provide guarantees in Brazilian Reals and has a Country Head
based in São Paulo who can support new business enquiries.
Fabio Accunzo, UKEF’s Country Head for Brazil and
Southern Cone, 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.
