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2010 Deal of the Year: Middle East
08 March 2011
The Brazilian government guarantees financing for Embraer jet.
Commercial banks have not done
export credit financing for an Embraer aircraft. That is why
when the E190 delivered to National Air Services (NAS) in Saudi
Arabia in the last week of December, the airline, lender and
Embraer celebrated a first. Using a new financing structure, an
alternative to the traditional financing provided by BNDES, NAS
closed a $27 million financing for one E190.
The new structure allows
commercial banks to fund Embraer aircraft with a Brazilian
guarantee from the Secretary of Foreign Affairs part of the
Brazilian Finance Ministry.
This is how it works. The Brazilian Export Credit Insurance
Agency acts on behalf of the Brazilian government to operate
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