Eve Announces BNDES approval of $92.5 million line of credit

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.

eVTOL Insights Editorial

This article was compiled by the eVTOL Insights editorial team.

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