Eve secures $88m loan from Brazil’s National Development Bank for production facility
Eve Air Mobility has secured an $88m loan for the construction of a production facility from Brazil’s National Development Bank (BNDES).
The facility, to be built in in Taubaté, in the state of São Paulo, Brazil, will eventually be capable of producing 480 air craft per year, according to the eVTOL developer.
The loan forms part of the BNDES Mais Inovação programme and builds on an approval of a $92.5m line of credit to support Eve’s eVTOL development signed back in 2022. The new funding agreement is structured by sub-credits from domestic and international sources, including the bank’s foreign currency funds, and has a maturity of 16 years.
Eduardo Couto, chief financial officer of Eve, said: “This financing strengthens Eve’s robust cash position by adding long-term financing aligned with our company profile. 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.”
To get up to the 480 aircraft per year end goal, Eve plans to expand the site’s production capacity on a modular basis, with four equally sized modules of 120 aircraft per year. This will provide for a disciplined, capital-efficient investment approach as the market grows.
CEO of Eve Johann Bordais said: “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.”
Aloizio Mercadante, president of BNDES, explained more about the purpose of the Mais Inovação programme: “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 program, which has already approved BRL 8bn in credits since 2023.”