Brazil's BNDES Fuels Eve's Sustainable Aviation Revolution with $88 Million Loan

In a groundbreaking move, Eve Air Mobility (Eve) has secured an $88 million loan agreement with Brazil's National Development Bank (BNDES) to fund the development of its cutting-edge electric vertical take-off and landing (eVTOL) aircraft production facility in Taubaté, São Paulo. This strategic partnership underscores BNDES' commitment to supporting innovative projects that drive decarbonization and the burgeoning urban air mobility (UAM) industry.

Unlocking the Future of Sustainable Urban Flight

Powering Eve's Ambitious Expansion Plans

The $88 million loan from BNDES will be instrumental in establishing Eve's eVTOL manufacturing facility, which will not only be the first of its kind in Brazil but also powered by clean, renewable energy. This aligns perfectly with Eve's unwavering commitment to sustainability and its mission to reimagine mobility through efficient and eco-friendly urban flight experiences.With an eventual total expected output of up to 480 aircraft per year, Eve plans to expand the site's production capacity on a modular basis, with four equally sized modules of 120 aircraft per year. This disciplined, capital-efficient investment approach will allow the company to scale its operations seamlessly as the UAM market continues to grow.

Strengthening Eve's Financial Position

The new funding agreement, structured by sub-credits from domestic and international sources, including the bank's foreign currency funds, and a maturity of 16 years, will further bolster Eve's robust cash position. This long-term financing aligns perfectly with the company's profile, enabling it to focus on delivering long-term value for its shareholders through an optimal capital structure that blends equity and debt.

Reinforcing BNDES' Commitment to Innovation

The financing under the BNDES Mais Inovação program underscores the bank's unwavering support for innovative projects that drive technological advancements and sustainable development. As the president of BNDES, Aloizio Mercadante, stated, "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."

Fostering Domestic Technological Capabilities

The BNDES Mais Inovação program, which has already approved BRL 8 billion in credits since 2023, aims to provide the necessary instruments to enhance the international competitiveness of domestic companies. As José Luís Gordon, the director of Productive Development, Innovation and Foreign Trade at BNDES, explains, "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."

Solidifying Eve's Partnership with BNDES

This latest financing agreement builds upon the successful partnership between Eve and BNDES, following the 2022 approval of a $92.5 million line of credit to support Eve's eVTOL development program. The continued support and confidence shown by BNDES in Eve's mission and capabilities are a testament to the company's innovative approach and its potential to revolutionize the urban air mobility landscape.