Embraer signed a 1 billion dollar syndicated credit agreement for five years, extending a previous $650 million credit operation from October 2022. This agreement provides the company with crucial financial resources at pre-negotiated rates.
Led by PNC Bank, Crédit Agricole, Citibank, and joined by institutions such as BNP Paribas, Mizuho, Bank of America, Sumitomo Mitsui Bank Corporation, Natixis, JP Morgan, MUFG, Santander, Banco do Brasil, Commerzbank, Morgan Stanley, Bradesco, and Goldman Sachs, the agreement offers access to a revolving credit line for Embraer’s subsidiaries in the U.S. and the Netherlands, with the Brazilian planemaker as guarantor.
“The extension of a significant syndicated credit line reinforces Embraer’s liquidity for the next five years, providing important support for our long-term strategy. Our partnership with strong and marquee financial institutions reinforces Embraer’s credit quality. For instance, S&P recently raised our rating to investment grade, and we believe this new RCF will be an important support for us to regain full investment grade status across all the rating agencies soon,” highlighted Antonio Carlos Garcia, CFO of Embraer.
Earlier this year, S&P Global Ratings raised Embraer’s rating from “BB+” to “BBB-” with a stable outlook. Strong cash generation, higher aircraft deliveries, cost reduction, and efficiency measures led to free cash flow in 2023, exceeding the company’s guidance. Fitch Ratings also revised the company’s BB+ rating with a positive outlook, while Moody’s raised the rating to Ba1, maintaining a stable outlook.
