Eve has announced that Brazil’s National Development Bank approved a $92.5 million line of credit to support the eVTOL development program.
BNDES approved two distinct lines of credit totaling $92.5 million. Both credit lines are expected to give beneficial terms and conditions to Eve with a 12-year maturity and amortization grace period. The financing for this program is subject to negotiations and agreements between Eve and BNDES.
Eve recently announced an LOI to develop eVTOL operations in Brazil and Latin America. The company also announced its first vertiport operator, Bluenest by Globalvia.
The first credit line is expected to be granted by the Climate Fund, a BNDES program created to provide financial support for businesses and projects that aim to combat climate change and reduce carbon emissions. The Climate Fund has urban mobility as one of the nine sub-programs. The fund also assists with entrepreneurial projects, as well as machinery and equipment acquisition. It funds many developmental programs that aim to reduce carbon emissions as well as focus on sustainability and services or projects.
Photo from Eve
The second line to be granted is by Innovation Finance, a BNDES program providing long-term funding for many industrial projects that will generate social benefits. This fund aims to improve funding for projects like urban mobility and energy generation.
“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-lifecycle approach towards carbon neutrality,” Co-CEO of Eve André Stein said. “Not only will this foster innovation, but 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 will be a critical partner to help Eve complete the design of our portfolio of products and services.”
“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. It is a massive innovative effort carried out in Brazil by highly qualified engineers. The successful development of the eVTOL will allow entry into a highly technologically intensive market segment.”
“The support from BNDES is a perfect fit for our project, considering the characteristics of these lines of credit and the bank’s mission to foster a cleaner form of transportation,” CFO of Eve Eduardo Couto said. These credit lines are expected to have a long-term profile that matches Eve’s cash-flow needs and strengthens our balance sheet. Upon completion of the funding from BNDES, 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. We believe that a more balanced capital structure is in the best interest of our shareholders and will help create long-term value.”
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