Eve Air Mobility has announced approval by the executive board of Brazil’s National Development Bank (BNDES) to support its eVTOL development efforts with two distinct credit lines, totaling $92.5 million with a 12-year maturity and amortisation grace period.

The first is expected to be granted by the Climate Fund (Fundo Nacional Sobre Mudança Climática), a BNDES program designed to provide financing to support businesses and projects that help mitigate climate change and reduce carbon emissions, with urban mobility as one of its nine sub-programs.

The Climate Fund helps with the funding of entrepreneurial projects, the acquisition of machinery and equipment, and the development of technologies to reduce carbon and greenhouse-gas emissions.

The second line of credit is expected to be granted by Innovation Finance (Financiamento a Empreendimentos de Inovação), a BNDES program that provides long-term funding for disruptive industrial projects that generate social benefits, such as urban mobility, energy generation and education.

Eve co-CEO André Stein said: “We appreciate the confidence and support that BNDES is showing to Eve as we continue to progress the development of a zero-emission aircraft with a commitment to a full-life cycle approach towards carbon neutrality.

“Not only will this foster innovation, but it will support the emergence of a more sustainable form of aviation, our eVTOL aircraft, which will transform the industry and urban air mobility, reducing noise and the cost of flying.”

BNDES director of productive and socio-environmental credit Bruno Aranha commented: “We are very proud of BNDES’ support for the development of Eve’s eVTOL. This operation is particularly representative in the Climate Fund context, as it involves the development of a disruptive product that will mitigate the emission of greenhouse gases.

“The successful development of the eVTOL will allow entry into a highly technologically intensive market segment and this operation represents another milestone in the long strategic partnership between the BNDES and Embraer, which began in 1997.

Eve chief financial officer Eduardo Couto added: “The support from BNDES is a perfect fit for our project, considering they are expected to have a long-term profile that matches Eve’s cash-flow needs and strengthens our balance sheet.

“Upon completion, Eve will have a more efficient capital structure with both debt and equity funding the continued development of our portfolio of solutions for the Urban Air Mobility ecosystem.”

Last month, Eve Air Mobility signed a Letter of Intent with FlyBIS Aviation to collaborate on the development of eVTOL operations in Brazil and South America. FlyBIS will also purchase up to 40 of Eve’s eVTOL aircraft.

The previous week, Eve signed with Volatus Infrastructure to supply vertiport automation software to improve the capacity and efficiency of Volatus vertiports.