The Brazilian Development Bank (BNDES) announced that it will support Embraer with BRL 1.4 billion (USD 588 million) to develop Legacy 500, its new mid-size jet, and its second generation commercial jets, E-Jets.
The loan is backed by three different types of credit lines:
(1) Investment Support (Sustençăo do Investimento), i.e., acquisition of capital goods
(2) Pro-engineering (Proengenharia), i.e., development of national engineering
(3) Social Investments of Companies (Investimentos Sociais de Empresas), i.e., corporate social responsibility
The development of innovative technologies will mainly happen at Embraer’s Săo José dos Campos factory, in the state of Săo Paulo. Besides this, one part of the financing will be used for social investments in Embraer’s schools, such as the Embraer Casimiro Montenegro Filho college. Embraer estimates that the total investments will involve 1,800 employees until 2018.
The Brazilian Development Bank provides credits with below-market interest rates to legal persons (private or public) with headquarters and administrations in Brazil. In the case of companies with headquarters abroad, majority shareholders (private or public) need to have residence in Brazil.