Brazilian aerospace company Embraer has received the green light from the Brazilian National Development Bank (BNDES) to export three aircraft to Egypt, in what will be the bank’s first transaction with the Cairo-based African Export-Import Bank (Afreximbank) as a debtor. The export deal is worth approximately USD 50.75 million and will be financed through the BNDES’s so-called Exim Post-Shipment program.
The funds will go to Embraer, while Afreximbank will finance Egyptian aircraft leasing company CIAF to purchase the aircraft. CIAF will then lease the planes to Egypt Air, which will sublease them to its subsidiary, Air Cairo.
According to a BNDES press release, African countries are emerging as promising markets for aircraft sales, and this deal gives Embraer an opportunity to expand into the African market. “The strategic partnership between the BNDES and Afreximbank is fundamental for the promotion of exports of aircraft and other Brazilian products, and is an important channel for the development of business on the African continent,” said José Luís Pinho Leite Gordon, BNDES productive development, innovation, and foreign trade officer.
BNDES has been supporting Embraer’s exports since 1997, offering it similar conditions to its international competitors that also benefit from development banks and export credit agencies in their respective countries. This allows the Brazilian exporter to compete on a level playing field with foreign planemakers.
Established in 1993 by African governments, private and institutional investors, and non-African investors, Afreximbank is a pan-African multilateral financial institution that aims to promote trade within the continent and beyond.
Afrexim’s mission is to be a center of excellence on African trade issues and to promote the expansion, diversification, and development of African trade. The institution seeks financing solutions that support the transformation of Africa’s trade structure, accelerating industrialization and intra-regional trade to promote Africa’s economic expansion.
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