Embraer Signs USD$2.5 Bln ICBC Financing Deal
Embraer has signed a memorandum of understanding with China's ICBC Financial Leasing under which ICBC will provide up to USD$2.5 billion in financing for planes over five years in one of Embraer's most promising markets.
Embraer expects demand for 430 commercial jets of up to 120-seat capacity and 635 executive jets in the next 10 years in the fast-growing Asian giant.
"The rapid development of the Chinese economy has resulted in high growth rates for regional and executive aviation, making it one of the greatest potential markets in the world," Paulo Cesar de Souza e Silva, Embraer's head of commercial aviation, said in a press release.
ICBC Financial Leasing is a wholly-owned subsidiary of the Industrial and Commercial Bank of China with a business spanning shipping and large equipment as well as aviation. It has more than 70 jets in its portfolio and plans to expand that to 250 by 2014, according to the release.
Embraer entered the Chinese market in 2000 and has since received 153 firm orders for commercial and executive jets, with more than 110 delivered. The company now accounts for three-quarters of China's market for commercial jets of up to 120 seats.