Embraer Board Approves $300 Million Eve Capital Raise With BNDES Backing

Embraer trims Eve stake to 69% as Brazil’s BNDES joins $300 million capital raise with board seat rights

By Brazil Stock Guide – Embraer SA’s (NYSE: ERJ) board of directors approved a fresh capital injection into Eve Air Mobility (NYSE: EVEX), its urban air mobility subsidiary, in a meeting held on August 13, according to a report by Valor Econômico.

The capital raise will total $300 million, coming from a pool of investors that includes Brazil’s development bank BNDES. The bank will also gain the right to appoint one member to Eve’s board of directors.

Embraer’s stake and lock-up terms

As part of the transaction, Embraer will invest $20 million at $4.85 per share. The company also agreed to a 12-month lock-up period, preventing it from selling existing Eve shares during that time.

Following the deal, Embraer’s ownership in Eve will fall from 82.9% to no less than 69%, though the Brazilian planemaker will retain control of the electric aircraft developer.