Embraer closes syndicated credit operation for US$ 1 billion
Deal involves 25 financial institutions, worldwide
São José dos Campos, September 9, 2010 – Embraer closed a credit operation today for US$ 1 billion with a group of 25 international financial institutions. The main objective of the standby agreement is to ensure access to short-term funds at pre-negotiated rates, if the Company should need them.
Under the coordination of BNP Paribas, there were seven bookrunners: BNP Paribas, Banco do Brasil, HSBC, Intesa Sanpaolo, Santander, Societé Générale, and The Bank of Tokyo- Mitsubishi. Another 18 institutions have participated in the deal: Banco de Chile, Banco Espírito Santo, Bank of America, BBVA – Banco Bilbao Vizcaya Argentaria, Bradesco, Chang Hwa Commercial Bank, Citibank, Credit Agricole, Credit Industriel et Commercial, Hua Nan Commercial Bank, ING, Itaú BBA, JPMorgan Chase, Mizuho Corporate Bank, Natixis, Sumitomo Mitsui Banking Corporation, The Bank of Taiwan, and The Royal Bank of Scotland.
This agreement is a renewal of the syndicated credit operation of US$ 500 million announced in August 2006. This time, the amount granted was twice that was initially sought, and demonstrates the confidence of the financial institutions in Embraer’s financial and operational health. The total amount will be available for up to two years, in two credit lines: US$ 400 million for pre-export financing, and US$ 600 million for working capital financing.
The funds will be available for two years, and the final deadline for payment, if any withdraws occur, will be September 2013.
“The closing of this operation demonstrates Embraer’s high degree of credibility, because this is a credit line of US$ 1 billion that is available for withdrawals under pre-agreed conditions,” said Luiz Carlos Aguiar, Embraer CFO. “The agreement also contributes to improving our credit risk classification in the near future.”
Embraer is rated investment grade by Moody’s and Standard & Poor’s. In 2010, for the 12th consecutive year, Embraer has been one of the finalists for the Transparency Award, presented by Anefac – Fipecafi – Serasa Experian, and was ranked as outstanding during the latest edition, in 2009.
Under the coordination of BNP Paribas, there were seven bookrunners: BNP Paribas, Banco do Brasil, HSBC, Intesa Sanpaolo, Santander, Societé Générale, and The Bank of Tokyo- Mitsubishi. Another 18 institutions have participated in the deal: Banco de Chile, Banco Espírito Santo, Bank of America, BBVA – Banco Bilbao Vizcaya Argentaria, Bradesco, Chang Hwa Commercial Bank, Citibank, Credit Agricole, Credit Industriel et Commercial, Hua Nan Commercial Bank, ING, Itaú BBA, JPMorgan Chase, Mizuho Corporate Bank, Natixis, Sumitomo Mitsui Banking Corporation, The Bank of Taiwan, and The Royal Bank of Scotland.
This agreement is a renewal of the syndicated credit operation of US$ 500 million announced in August 2006. This time, the amount granted was twice that was initially sought, and demonstrates the confidence of the financial institutions in Embraer’s financial and operational health. The total amount will be available for up to two years, in two credit lines: US$ 400 million for pre-export financing, and US$ 600 million for working capital financing.
The funds will be available for two years, and the final deadline for payment, if any withdraws occur, will be September 2013.
“The closing of this operation demonstrates Embraer’s high degree of credibility, because this is a credit line of US$ 1 billion that is available for withdrawals under pre-agreed conditions,” said Luiz Carlos Aguiar, Embraer CFO. “The agreement also contributes to improving our credit risk classification in the near future.”
Embraer is rated investment grade by Moody’s and Standard & Poor’s. In 2010, for the 12th consecutive year, Embraer has been one of the finalists for the Transparency Award, presented by Anefac – Fipecafi – Serasa Experian, and was ranked as outstanding during the latest edition, in 2009.
Source: EMBRAER
