BlackRock (BLAK34) reduced its stake in Embraer (EMBR3) for 3.4% of the company’s total outstanding common stock, according to a filing Wednesday with the Securities and Exchange Commission (CVM) (3).
According to the report, the Black rock now has an amount of 24,643,936 Embraer common shares. The aircraft manufacturer stressed that the objective of the holdings “is strictly investment and does not aim to change the share control or administrative structure of the company”.
Furthermore, the manager has not signed any contracts or agreements regulating the exercise of voting rights or the purchase and sale of securities issued by Embraer.
Embraer (EMBR3): BNDES finances the exports of over 39 aircraft with R$6 billion
The export of another 39 Embraer aircraft (EMBR3), with financing from the National Bank for Economic and Social Development (BNDES) of around R$6 billion, will strengthen Brazil’s trade balance.
There are three separate contracts with Skywest Airlines, American Airlines (AALL34) and Azorra Aviation Holdings LLC, totaling more than R$7 billion in exports of high-tech, high-value-added goods. The information was released last Tuesday (2) by the bank.
For the president of the BNDESAloizio Mercadante, financing for Embraer aircraft exports it is fundamental for Brazil. “The BNDES, as a credit agency for Brazilian exports, has among its objectives to offer conditions that guarantee equal competitiveness to Brazilian exporters in the international market, generating employment and income in Brazil.”
OR president of Embraer, Francisco Gomes Neto, recalled that the company and BNDES have a “solid and long-term” relationship. And he added: “The support we receive for the export of our aircraft is essential for us to consolidate our growth and expand our global presence.” According to Gomes Neto, the actions of the BNDES not only benefit Embraer, but “also contribute to the creation of thousands of highly skilled jobs in Brazil and the increase in exports of high value-added products.”
Embraer contracts
The contract with the company SkyWest AirlinesInc. plans to export ten E-175 jets of the Embraer E-175 model (up to 76 passengers), while American Airlines has obtained financing approved by BNDES for the acquisition of up to 11 E-175 jets. Signed the sale of up to 18 jets of the E-195-E2 (up to 146 seats) and E-190-E2 (up to 114 seats) models, considered the largest and most sophisticated aircraft of the Brazilian manufacturer with the company Norte -American Azorra Aviation Holdings LLC. Azorra specializes in the acquisition and leasing (financial leasing) of aircraft for the operation of commercial airlines.
In 2023 alone, BNDES approved and negotiated seven financing transactions for Embraer export, for a total of 67 commercial aircraft, with financing of up to R$10 billion. Deliveries are scheduled until 2025.
The bank underlines that, in addition to encouraging the development of the national technological goods industry, aircraft exports they expand and maintain high-skilled jobs, as well as generate important foreign exchange for the country’s economy. They are considered strategic operations, in line with the Brazilian export support policy, with the aim of bringing greater competitiveness to Brazilian exports and encouraging the activities of national companies in the international market.
Since 1997, BNDES has financed approximately $25.6 billion for the export of 1,300 Embraer aircraft. Over the period, the contracted operations have allowed the company to compete on the international market on equal terms with its competitors. The bank’s support complements financing provided by the private market.
Credit insurance
Of the three recently approved deals, two (American Airlines and Azorra) had export credit insurance (SCE) backed by the Export Guarantee Fund (FGE) and will raise approximately R$300 million in new insurance premiums for the fund. Of an accounting nature and linked to the Ministry of Finance, the FGE aims to cover the guarantees provided by the Union in the operations of the SCE.
According to BNDES, insurance guarantees export credit operations against commercial risks (non-payment due to bankruptcy or late payment), political risks (moratoriums, wars, revolutions, among others) and extraordinary risks (natural disasters) that can influence the production or marketing of Brazilian goods and services abroad.
Embraer adds South Korea to C-390 Millenium list
Another country on the list: South Korea announced it Embraer (EMBR3) achieved another victory with the C-390 Millenium. The aircraft was the winner of the LTA-II selection program for the Republic of Korea Air Force.
The announcement from the South Korean Defense Acquisition Programs Administration (DAPA) regarding the choice of Embraer C-390 Millennium (EMBR3) in the public tender process for the Large Transport Aircraft (LTA) II program, for the supply of military transport aircraft to the Republic of Korea Air Force (ROKAF).
South Korea is the first customer in Asia to operate the service C-390 Millennium
Embraer (EMBR3) contract with Korea
According to the signed contract, the Embraer must provide will provide an undisclosed number of C-390 Millennium aircraftconfigured to meet specific ROKAF requirements.
The contract also covers services and support, including training, ground support equipment and spare parts. The total value of the contract will be incorporated into the company’s order book. Embraer in the fourth quarter of 2023.
The aircraft manufacturer has engaged in extensive cooperation with local authorities, including the production of a significant amount of aircraft parts. C-390 Millennium from Korean partner companies. Furthermore, the development of a local supplier for Maintenance, Repair and Overhaul (MRO) services is planned.
According to president and CEO of Embraer Defense and Security, Bosco da Costa Juniorwe are facing a new era in relations between Brazil and South Korea. In this scenario, Embraer (EMBR3) is committed to increasing the capabilities of local aerospace and defense industries together with Korean partners.
“We welcome the Republic of Korea Air Force to join the growing number of air forces operating the C-390 Millennium – the most modern military tactical transport aircraft. Day after day, the aircraft demonstrated its ability to perform a wide range of missions in an extremely efficient, fast and easy-to-use manner,” the executive said.
Embraer: The C-390 Millenium is present in seven air forces
With the selection, South Korea is the seventh country to choose the C-390. Previously, Brazil, Portugal, Hungary, the Netherlands, Austria and the Czech Republic had announced the adoption of the aircraft into their air forces.
“Since its entry into operation in Brazilian Air Forcein 2019, and more recently in Força
Portuguese Air Force, in 2023, the C-390 has demonstrated its capability, reliability and performance,” Embraer says in a statement.
The current fleet of aircraft in operation has accumulated more than 10,800 flight hours, with operational availability of approximately 80% and mission completion rates above 99%, demonstrating its exceptional productivity in its category.
OR C-390 It has the capacity to carry up to 26 tons of payload, higher than the average of other medium-sized military transport aircraft. Furthermore, the aircraft performs tasks of transport and launch of cargo and troops, aeromedical evacuation, search and rescue, firefighting and humanitarian missions.
A Embraer It also has a version configured for aerial refueling, designated the KC-390, which has demonstrated its capabilities as both a tanker and receiver, including aerial refueling operations with other KC-390s using pods installed under the wings.
Embraer shares the performance
*With information from Agência Brasil
Source: Terra
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