Eve Holding, Inc. (NYSE:EVEX), a company specializing in aircraft manufacturing, has entered into a significant loan agreement with Banco Nacional de Desenvolvimento Econômico e Social (BNDES), securing approximately $35 million to further its electric vertical take-off and landing (eVTOL) project. The agreement, which took place on Thursday, November 22, 2024, involves Eve Holding’s subsidiary, Eve Brazil, and emphasizes the development phase of the company's eVTOL aircraft.
The loan, denominated in Brazilian reais and amounting to R$ 200 million, is supported by Brazil’s National Development Bank through the Fundo Nacional Sobre Mudança Climática (FNMC), a fund dedicated to climate change mitigation and carbon emission reduction initiatives. The credit line is designated specifically for the second phase of Eve's eVTOL project, which aligns with FNMC's focus on environmentally sustainable business practices.
Under the terms of the agreement, the funds are to be utilized within a 30-month period from the signing date, with repayment scheduled for December 15, 2040. The loan agreement stipulates conditions under which BNDES may demand early termination and acceleration of payment, including a 90-day uncured default by Eve Brazil following written notice or other specific terms outlined in the agreement.
Eve Holding has provided an English translation of the Loan Agreement as Exhibit 10.1 in the SEC filing, offering additional details on the financial arrangement. The loan is expected to bolster Eve Holding’s position in the eVTOL market, a segment that is increasingly gaining attention for its potential in urban mobility and its reduced environmental impact compared to traditional aircraft.
In other recent news, Eve Air Mobility, the electric vertical take-off and landing (eVTOL) aircraft company, reported significant developments in its third-quarter earnings call. The company announced a solid pre-order backlog of 2,900 aircraft valued at $14.4 billion. Despite a net loss of $36 million for the quarter, the company maintains a strong liquidity position with $450 million available, sufficient for three years of operations. Eve Air Mobility also reported record services revenue of $1.6 billion, a 30% increase, indicating a focus on customer support.
The company has completed a full-scale engineering prototype with flight tests set to begin early next year. It has achieved regulatory milestones with the Brazilian Civil Aviation Authority and the FAA's SFAR, and launched the Eve TechCare service portfolio. The company also secured financing for a Brazilian manufacturing facility, with the production of 240 eVTOLs planned.
InvestingPro Insights
Eve Holding's recent $35 million loan agreement with BNDES aligns with the company's ambitious eVTOL project, but investors should consider the broader financial picture. According to InvestingPro data, Eve Holding has a market capitalization of $1.22 billion, reflecting significant investor interest in its innovative aircraft technology.
InvestingPro Tips highlight that Eve Holding "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." These factors suggest the company has a solid financial foundation to support its development projects, including the eVTOL initiative funded by the recent loan.
However, it's important to note that Eve Holding is "not profitable over the last twelve months," with an adjusted operating income of -$155.35 million. This aligns with the capital-intensive nature of aircraft development and the early stage of eVTOL technology.
The stock has shown strong recent performance, with a 34.75% return over the last week and a 45.23% return over the last three months. This positive momentum may reflect investor optimism about the company's progress and the new funding secured for the eVTOL project.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Eve Holding, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.