Eve Air Mobility secures USD 88 Million loan for eVTOL manufacture

São Paulo Facility set to produce 480 eVTOLs annually

Eve Air Mobility, a subsidiary of Brazilian aircraft manufacturer Embraer, says it has secured a loan of USD 88 million from Brazil’s National Development Bank to fund its upcoming manufacturing facility at São Paulo in Brazil.

Manufacturer of electric aircraft, Eve Air Mobility, which is a wholly-owned subsidiary of Brazilian aerospace company Embraer, has secured financing for its first manufacturing facility at Taubaté in São Paulo province of Brazil, where it will produce electric vertical take-off and landing aircraft.

In a press statement, Eve Air Mobility says that the funding has been provided by Brazil’s National Development Bank (BNDES), which has approved the funding of USD 88 million.

“We are profoundly grateful for the continued support and confidence that BNDES has shown in Eve as we advance in our mission to reimagine mobility through efficient and sustainable urban flight experiences. This financing will be instrumental in setting up our eVTOL manufacturing facility, which will be not only the first of its kind in Brazil but also powered by clean, renewable energy, aligned with our commitment to sustainability,” says Johann Bordais, CEO, Eve Air Mobility.

The statement adds that the funding agreement, structured by sub-credits from domestic and international sources, including the bank’s foreign currency funds, and a maturity of 16 years, builds upon the partnership between Eve and BNDES following the 2022 approval of a USD 92.5 million line of credit to support Eve’s eVTOL development programme.

“This financing strengthens Eve’s robust cash position by adding long-term financing aligned with our company profile. As we advance our eVTOL programme development and manufacturing efforts, our focus remains on delivering long-term value for our shareholders with an optimal capital structure mixing equity and debt,” says Eduardo Couto, Chief Financing Officer, Eve Air Mobility.

The aircraft company says it expects an output of up to 480 aircraft per year from the new development facility. Eve also plans to expand the site’s production capacity on a modular basis, with four equally sized modules of 120 aircraft per year, which would provide for a disciplined, capital-efficient investment approach as the market grows.

“The financing reinforces the commitment of President Lula’s government to support innovative projects in Brazilian industry, such as air mobility, which uses high technological intensity. The BNDES has the necessary instrument to provide international competitiveness to domestic companies, which is the BNDES Mais Inovação programme, which has already approved BRL 8 billion (USD 1.42 billion) in credits since 2023,” explains Aloizio Mercadante, President, Brazil’s National Development Bank.

“Financing the capacity for innovation, with a disruptive solution for urban mobility and decarbonization, is the objective of Plano Mais Produção, the financing arm of Nova Indústria Brasil, to boost the productive sector and ensure that technological development and production occur within the national territory, generating more qualified jobs and income within the country,” says José Luís Gordon, Director of Productive Development, Innovation and Foreign Trade at BNDES.

The aircraft manufacturer boasts the industry’s largest backlog with letters of intent (LOI) for 2,900 eVTOLs from 30 customers in 13 countries, representing a potential USD 14.5 billion in sales revenue.