Apollo Funds commits up to $1.5 billion in Embraer customer financing agreement

Embraer SA announced that it has signed a memorandum of understanding with an Apollo subsidiary on behalf of its customers and managed funds, regarding a US$1.5 billion customer financing program for Embraer regional aircraft.

Apollo, in collaboration with Embraer, will offer a full range of innovative and tailored solutions across the spectrum of customer financing and delivery.

The program also includes options to explore financing for clients’ ESG-focused projects, such as the development of green technologies.

Apollo’s financing capabilities encompass various debt financing alternatives as well as Progress Delivery Payment (PDP) financing and a full suite of lease options.

The funding would primarily be available through Apollo’s aviation business, which includes dedicated investment funds, its aircraft lending platform PK AirFinance and its leasing and servicing subsidiary Merx Aviation.

Apollo can also access additional capital at low cost on its broader investment platform.

As the first major transaction under the new initiative, the companies also revealed that Apollo, on behalf of its clients and managed funds, has entered into a definitive sale and leaseback agreement, including financing PDP, for six Porter Airlines E195-E2s scheduled for delivery in 2023. .

“Working closely with Embraer, Apollo has created a range of efficient and cost-effective financing options that provide our customers with the individual flexible arrangements they require,” said Antonio Carlos Garcia, Chief Financial Officer of Embraer.

Martyn Holmes, CCO Embraer Commercial Aviation, added“Embraer is known for its innovative, customer-focused solution-driven approach to the market.

“Apollo’s customer financing program continues Embraer’s drive to provide our customers with even more financing solutions, continually raising the bar to focus on real customer needs.”

“This is another key moment in Apollo’s broader aerospace ambitions, which already encompass the established and respected aerospace platform brands of Merx Aviation and PK AirFinance.

“Apollo can make a difference at every stage of the customer’s financing journey, from PDPs and bridging facilities to leasing and long-term debt products across the widest range of asset types and ages,” said Gary Rothschild, CEO of Merx and head of aviation at Apollo.

“We are delighted to work with Embraer to jointly bring effective financing solutions to our airline customers and to further collaborate on other investment opportunities, including green technology developments.”

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