Apollo Funds Commit Up To US$1.5 Billion To
Embraer Customer Financing Agreement
(19/09/22)
Embraer has signed a memorandum of understanding
with an affiliate of Apollo, on behalf of its clients and managed
funds, with respect to an US$1.5 billion customer financing
program for Embraer’s regional aircraft.
Apollo, working alongside Embraer, will offer a
comprehensive range of bespoke solutions across the
spectrum of customer and delivery financing.
The program also
includes options to explore financing for customers’ ESG focused
projects, such as the development of green technologies.
Martyn Holmes, CCO Embraer Commercial Aviation,
said, “Embraer is
known for its customer focused, innovative solution driven
approach to the market. Apollo’s customer financing program
continues Embraer’s drive to provide our customer with even more
financing solutions, continuously raising the bar on focusing on
what customer’s really need.”
Apollo’s financing capabilities encompass various debt
financing alternatives along with PDP (Progress Delivery Payment)
financing and a full suite of leasing options.
Funding would be
primarily available through Apollo’s aviation business, which
encompasses dedicated investment funds, its aviation lending
platform PK AirFinance and its leasing and servicing affiliate
Merx Aviation.
Apollo can also access additional low-cost capital
across its broader investment platform.
As the
first major transaction under the new initiative, the firms also
disclosed that Apollo, on behalf of its clients and managed funds,
entered a definitive sale and leaseback agreement, including PDP
financing, for six Porter Airlines E195-E2s scheduled for delivery
in 2023.
“This is yet another
key moment in Apollo’s wider aerospace ambitions, which already
encompass the established and respected aviation platform brands
of Merx Aviation and PK AirFinance. Apollo can make a difference
at every point in the customer financing journey, from PDPs and
bridge facilities to long-term leasing and debt products across
the widest range of asset types and ages,” said Gary Rothschild,
CEO of Merx and Head of Aviation at Apollo. “We are excited to
work with Embraer to jointly bring efficient financing solutions
to our airline customers and to further collaborate on other
investment opportunities, including green tech developments.”
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