Embraer and BNP Paribas have closed a US$500mn syndicated standby facility, comprising a US$250mn trade finance credit facility, available for disbursement in the next three years with a two-year repayment term; and a US$250mn revolving credit facility, available for multiple drawdowns within the term determined by the company at the drawdown date not exceeding five years from the closing date.

The main objective negotiating this facility was to create an important tool for a liability management process which will result in a reduction of the company’s overall cost of debt.

The syndicate was led by BNP Paribas, which has also acted as the sole bookrunner. Banco do Brasil, Banco Latinoamericano de Exportaciones (Bladex), Banco Bradesco, Natexis Banques Populaires and Sumitomo Mitsui Banking Corporation acted as mandated lead arrangers.

In addition, ABN AMRO, Banco Santander Central Hispano, Banco Bilbao Vizcaya Argentaria, Credit Industriel et Commercial, HSBC, JPMorgan Chase, Bank of Tokyo-Mitsubishi, Citibank and Sanpaolo Imi Bank are participating in the transaction.

“This facility is the first large transaction after we were awarded investment grade rating by both Moody’s and S&P… The facility will also represent a hedging instrument to support Embraer’s finance strategy,” says Antonio Luiz Pizarro Manso, Embraer’s executive vice-president and CFO.