Aviation
Commercial /
Brazil
Financing
Apollo funds sign agreement with Embraer for up to 1.5 billion dollars; Porter Airlines acquires six E195-E2s
Embraer E195-E2
Porter Airlines
Image: Embraer
Rafael Ramos
9/15/2022
Embraer and signed a Memorandum of Understanding (MoU) with Apollo funds for the financing of regional aircraft and services in the amount of 1.5 billion dollars (about 7.8 billion reais). The development of client projects focused on ESG (environmental, social and governance criteria) is also part of the agreement, as well as more sustainable technologies.
In addition, Apollo and Embraer approved a sale and lease agreement for six E195-E2s to Porter Airlines, with deliveries expected in 2023, which is the first major transaction of the new cooperation.
Apollo will offer the progressive payment system (PDP) and leasing as an alternative.
In this way, Porter will no longer buy the planes directly from Embraer. Instead, it will lease Embraer planes from rental companies. Eventually the airline will buy the planes in the future. This is justified to reduce the financial impact of acquiring new aircraft.
Apollo's aviation business unit will handle the financing, as will investment platform PK AirFinance and affiliate Merx Aviation.
“Working closely with Embraer, Apollo has created a range of efficient and cost-effective financing options that provide our customers with the flexible solutions they need,” said Embraer CFO Antônio Carlos Garcia.
Apollo will also be able to access additional low-cost capital on its investment platform.
Ken Yam/Unsplah
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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