Embraer’s Eve gets $50 million Citi loan to fund ‘flying car’ development
6:17 pm Thursday, October 31st, 2024
By Gabriel Araujo
SAO PAULO (Reuters) – Electric aircraft maker Eve has obtained a $50 million loan from Citibank, strengthening its balance sheet and supporting the development of its “flying car,” the company said on Wednesday.
Eve, controlled by Brazilian planemaker Embraer, is one of a bevy of startups worldwide developing battery-powered aircraft that can take off and land vertically to ferry travelers on short city trips, allowing them to beat traffic.
The firm expects its electric vertical take-off and landing (eVTOL) aircraft to obtain certification and enter service in 2026, and has amassed nearly 3,000 potential orders ahead of production with potential revenue of $14.5 billion.
“Eve continues to attract new investors, a sign of the continued confidence in our strategic plan and strong customer interest in our eVTOL aircraft,” Chief Financial Officer Eduardo Couto said in a statement.
The Citi loan comes on top of a credit line of $88 million that Eve secured from Brazil’s state development bank BNDES earlier this month to fund the development of its first production facility in Sao Paulo state.
Following a raising of $95.6 million in new equity in July from a group of investors including Embraer and Japan’s Nidec, the fresh loan pushes Eve’s pro-forma liquidity to about $480 million, the company said.
The key metric stood at around $340 million at the end of the second quarter.
“The bank loan, along with existing cash and credit lines, ensures that Eve remains well capitalized with a comfortable balance sheet and one of the highest cash runways in the advanced air mobility industry,” Couto said.
Eve debuted on the New York Stock Exchange in May 2022, raising around $400 million to develop and produce its eVTOL aircraft.
(Reporting by Gabriel Araujo; Editing by Sonali Paul)
