Electric aircraft maker Eve, a subsidiary of Brazilian aircraft company Embraer (NYSE:), has received an $88 million loan from Brazilian development bank BNDES. The funds are earmarked for the construction of Eve’s first production facility, central to the company’s strategy to produce electric vertical take-off and landing (eVTOL) aircraft for short urban routes.
The company, which is at the forefront of the emerging battery-powered aircraft market, aims to overcome urban traffic congestion by offering a new type of urban mobility. Looking ahead, Eve expects to have its eVTOL aircraft certified and operational by 2026. The company has already expressed interest for nearly 3,000 potential orders, which ‘ could produce a projected revenue of around $14.5 billion.
Eve’s first factory will be located in Taubate, Brazil. The location was chosen due to its logistical advantages and its proximity to the Embraer plant in Sao Jose dos Campos. The facility is expected to have an annual production capacity of 480 aircraft at full operating capacity.
The current BNDES loan complements a $92.5 million credit line previously granted in 2022, which also supported the development of the Eve eVTOL project. The new loan has a term of 16 years, reflecting the long-term nature of Eve’s business plan.
Eve’s CEO, Eduardo Couto, commented on the importance of the financing: “This financing strengthens Eve’s strong liquidity position by adding long-term financing in line with our company profile. He also confirmed the company’s commitment to shareholder value and a balanced approach to capital structure that combines both equity and debt.
This strategic move by Eve is part of a wider effort to position itself as a leader in the electric aircraft industry. Support from financial institutions and potential market demand point to future confidence for urban air mobility.
Reuters contributed to this article.
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2024-10-15 16:45:00
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