Eve Secures $50 Million Loan from Citi for eVTOL Development

image

Eve Secures $50 Million Loan from Citi for eVTOL Development

Brazilian aviation company Embraer's electric aircraft subsidiary, Eve, has secured a $50 million loan from Citibank. This financing aims to strengthen the company's balance sheet and advance the development of its innovative "flying car." The electric vertical takeoff and landing (eVTOL) aircraft Eve is working on is designed to provide a new solution for urban travel, allowing passengers to bypass traffic congestion.

The eVTOL aircraft is expected to be certified and enter service by 2026, and Eve has already garnered approximately 3,000 potential orders. This could translate into about $14.5 billion in potential revenue, demonstrating the strong market demand for the new mode of transport.

Eve's Chief Financial Officer, Eduardo Couto, emphasized the influx of new investors as a testament to the ongoing confidence in the company's strategic direction and the strong interest from customers in the eVTOL aircraft.

This recent financing from Citi adds to the $88 million loan obtained from Brazil's National Bank for Economic and Social Development (BNDES) in October. The BNDES funds are allocated for the establishment of Eve's first production facility in the state of São Paulo.

In addition to the loans, Eve raised $95.6 million in new equity from investors, including Embraer and Japan's Nidec Corporation, in July. With the inclusion of the Citibank loan, Eve's pro-forma liquidity has now reached approximately $480 million, a substantial increase from the reported $340 million at the end of the second quarter.

Couto highlighted the importance of the bank loan in conjunction with existing cash reserves and credit facilities, noting that these resources provide Eve with a strong capital position. He also stated that the company's financial stability ensures one of the most significant cash lifespans in the advanced air mobility industry.

Eve went public on the New York Stock Exchange in May 2022, raising approximately $400 million for the development and production of the eVTOL aircraft. This IPO was a significant step in the company's journey to revolutionize urban air mobility.