Brazil's Embraer obtains $500 million syndicated loan

By Reshmi Basu

New York, Aug. 29 - Sao Paulo, Brazil-based aircraft manufacturer Empresa Brasileira de Aeronáutica SA (Embraer) said it closed a $500 million syndicated standby facility, which was comprised of a $250 million trade finance credit facility and a $250 million revolving credit facility.

The intention of the loan was to reduce the company's overall cost of debt, according to a news release.

The trade finance facility will be available for three years with a two-year repayment term, while the revolver will be available for five years.

BNP Paribas was the bookrunner.

The syndicate included Banco do Brasil, Banco Latinoamericano de Exportaciones, SA (Bladex), Banco Bradesco SA, Natexis Banques Populaires and Sumitomo Mitsui Banking Corp. as mandate lead arrangers and ABN Amro Bank, Banco Santander Central Hispano, Banco Bilbao Vizcaya Argentaria, Credit Industriel et Commercial, HSBC Bank, JP Morgan Chase, the Bank of Tokyo-Mitsubishi, Citibank and Sanpaolo Imi Bank.

"The facility will also represent a hedging instrument to support Embraer's finance strategy," said Antonio Luiz Pizarro Manso, chief financial officer, in the release.

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