Eve Announces BNDES approval of $92.5 million line of credit to support eVTOL development program
Brazil's National Development Bank approved two credit lines to support Eve's eVTOL development program MELBOURNE, Fla., Dec. 23, 2022 /PRNewswire/ -- Eve Air Mobility announced today the approval...…
Two credit lines were approved by Brazil's National Development Bank to support Eve's development program for eVTOL.
MELBOURNE (Fla.), Dec. 23, 2022 /PRNewswire/ -- Eve Air Mobility ("Eve") (NYSE; EVEX; EveXW) today announced that the Brazilian National Development Bank ("BNDES") has approved Eve's eVTOL-related credit lines totaling $92.5million. Both credit lines will offer Eve favorable terms and conditions with a 12-year amortization and maturity grace period. In connection with these credit lines, the financing is subject to the execution and negotiation of definitive agreements between Eve BNDES and the satisfaction of certain conditions.
The Climate Fund (Fundo Nacional Sobre Mudanca Climatica, or "Climate Fund") will likely grant the first credit line. This BNDES program is designed to finance businesses and projects that contribute to reducing carbon emissions and mitigating climate change. It also includes urban mobility as one its nine sub-programs. The Climate Fund supports the financing of entrepreneurs, the acquisition and maintenance of equipment, and the development of technologies that reduce greenhouse gas emissions and carbon. The fund focuses not only on Urban Mobility but also sustainable cities and climate change. It also supports efficient machinery and equipment, renewable energie, solid residue, charcoal and native forestry. Carbon management and services are all supported.
The Innovation Finance (Financiamento a Empreendimentos De Inovacao) is expected to provide the second credit line. This BNDES program provides long-term financing for disruptive industrial projects that create social benefits such as education, mobility, and energy generation.
Andre Stein, Eve's co-CEO, said that BNDES has shown Eve confidence and support. "We appreciate their commitment to a full life cycle approach to carbon neutrality." This will not only foster innovation but also support the development of an environmentally-friendly form of aviation, the eVTOL aircraft. It will revolutionize the industry and urban air mobility and reduce noise and cost. BNDES will be a key partner in helping Eve design our portfolio of products, and services.
"We are proud to have BNDES support the development of Eve’s eVTOL. This operation is especially representative of the Climate Fund context because it involves the development a disruptive product to reduce the emission of greenhouse gasses. This is a hugely innovative effort by highly-qualified engineers in Brazil. The eVTOL's successful development will enable entry to a highly technical market segment. This operation is also significant in the long-standing strategic partnership between Embraer and the BNDES, which started in 1997," commented Bruno Aranha (director of productive credit and socio-environmental credit) at the BNDES.
"The support of BNDES is a perfect fit to our project, considering both the characteristics of these credit lines and the bank’s mission of promoting a cleaner mode of transportation. These credit lines will have a long-term profile that matches Eve’s cash flow needs and strengthens the balance sheet. Eve will be able to use both equity and debt funding to continue the development of our solutions for Urban Air Mobility. "We believe that a more balanced financial structure is in our shareholders' best interests and will help create long term value," Eduardo Couto, chief finance officer at Eve.
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About Eve Air Mobility
Eve is committed to the acceleration of the Urban Air Mobility ecosystem. Eve has a start-up mentality and Embraer S.A.'s 50-year aerospace experience. With a single focus, Eve takes a holistic approach in advancing the UAM ecosystem. This includes an advanced eVTOL program, extensive global support networks and a unique air traffic control solution. Eve has been listed on the New York Stock Exchange since May 10, 2022. Its shares of common stock as well as public warrants trade under the tickers EVEX and EVEXW. Visit URL for more information.
Banco Nacional de Desenvolvimento Economico e Social, or BNDES for short, is a Brazilian federal institution based in Rio de Janeiro. Its purpose is to provide long-term financing and investments in all areas of Brazil's economy. BNDES is the largest international development bank. It supports entrepreneurs of all sizes, including private citizens, in expanding and modernizing current projects and creating new businesses. The specific goal of BNDES is to increase Brazil's productivity, employment, income, and social inclusion. Visit URL for more information.
Forward-Looking Statements Disclosure
This press release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act (1996). Forward-looking statements can be identified using words like "estimate," “plan,” "project," and "anticipate," "believe," and "seek," as well as the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not historical facts and statements about Eve's or BNDES' current expectations and forecasts for future events. This includes statements about the negotiation and entering into definitive arrangements in relation to the announced credit line. These statements are based upon current assumptions regarding future events and may not prove accurate. They are not predictions of actual performance. These forward-looking statements should not be regarded as a guarantee, assurance, prediction, or definitive statement of facts or probabilities. Actual events and circumstances can be difficult to predict or impossible to predict. They may also differ from assumptions and could prove to be significant. Eve cannot control many actual events or circumstances.
Forward-looking statements involve risks and uncertainties.
Actual results may differ from those implied in these forward-looking statements if any of these risks occur or if our assumptions prove wrong. Eve may not be aware of additional risks or believe that they are immaterial. These factors could cause actual results to differ significantly from the forward-looking statements. Forward-looking statements also reflect Eve's views and expectations regarding future events, as well as her plans and forecasts. Eve expects that Eve's assessment will change due to future events and developments. Eve is free to make forward-looking statements, but Eve disclaims any obligation. Eve could choose to update these statements in the future. These forward-looking statements are not intended to represent Eve's opinions as of the date of the press release. Therefore, undue reliance on the forward-looking statements is not recommended.
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