Embraer's Eve Secures $50 Million Loan from Citibank for eVTOL Development

SAO PAULO (Reuters) - Eve, a subsidiary of Brazilian aerospace company Embraer, has secured a $50 million loan from Citibank. This financial boost aims to support the development of Eve's electric vertical take-off and landing (eVTOL) aircraft, often referred to as 'flying cars.'

Eve is among several startups globally that are innovating in the field of battery-powered aircraft designed for short urban trips, offering a solution to bypass city traffic. The company anticipates that its eVTOL aircraft will receive certification and commence operations by 2026. Eve has already garnered nearly 3,000 potential orders, which could translate to approximately $14.5 billion in revenue.

Eduardo Couto, Chief Financial Officer of Eve, commented on the loan, stating, "Eve continues to attract new investors, a sign of the continued confidence in our strategic plan and strong customer interest in our eVTOL aircraft."

This Citibank loan supplements an $88 million credit line from Brazil's state development bank BNDES, which was secured earlier this month to finance the establishment of Eve's first production facility in Sao Paulo state.

In July, Eve raised $95.6 million in new equity from investors, including Embraer and Japan's Nidec. With the new loan, Eve's pro-forma liquidity now totals about $480 million, a significant increase from approximately $340 million at the end of the second quarter.

Couto further stated, "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."

Eve entered the New York Stock Exchange in May 2022, raising around $400 million to advance the development and production of its eVTOL aircraft.