SAO PAULO (Reuters) - Electric aircraft maker Eve has secured an $88 million loan deal with Brazil's state development bank BNDES to fund the development of its first production facility, it said in a statement on Tuesday.
WHY IT'S IMPORTANT
Eve, controlled by Brazilian planemaker Embraer, is one of a bevy of startups worldwide developing battery-powered aircraft that can take off and land vertically to ferry travelers on short city trips, allowing them to beat traffic.
The firm, which expects its electric vertical take-off and landing (eVTOL) aircraft to obtain certification and enter service in 2026, has amassed nearly 3,000 potential orders ahead of production with potential revenue of $14.5 billion.
BACKGROUND
Eve revealed last year that its first production facility would be located in Taubate, Brazil, capitalizing on the town's logistical advantages and proximity to Embraer's headquarters in the neighboring town of Sao Jose dos Campos.
The plant is expected to eventually reach annual capacity of 480 aircraft.
LOAN DETAILS
The new funding agreement comes on top of a $92.5 million credit line from BNDES announced in 2022 to support the development of Eve's eVTOL, and a number of equity investments. The new loan has a maturity of 16 years, Eve said.
KEY QUOTES
"This financing strengthens Eve's robust cash position by adding long-term financing aligned with our company profile," Eve's Chief Financial Officer Eduardo Couto said.
"As we advance our eVTOL program development and manufacturing efforts, our focus remains on delivering long-term value for our shareholders with an optimal capital structure mixing equity and debt."
($1 = 5.5957 reais)