Embraer's Eve raises $230 million amid 'flying car' development

By Gabriel Araujo and Rodrigo Viga Gaier

SAO PAULO/RIO DE JANEIRO, Aug 14 (Reuters) - Electric aircraft maker Eve EVEX.N said on Thursday it has raised $230 million in equity via a registered direct offering that included fresh funding from BNDESPAR, the investment arm of Brazil's state development bank BNDES BNDES.UL.

WHY IT'S IMPORTANT

The funds will help back the development of Eve's so-called "flying car," a battery-powered aircraft that can take off and land vertically to transport travelers on short city trips. Eve is controlled by Brazilian planemaker Embraer EMBR3.SA.

KEY QUOTES

"This equity raise marks a significant milestone in our journey ... We're proud to have BNDES onboard and we deeply value Embraer's continued commitment to Eve and our program," Eve CEO Johann Bordais said in a statement.

BNDES head Aloizio Mercadante said in a separate statement that the bank's support is a "strategic step" toward placing Brazil at the forefront of sustainable air mobility and reinforces its commitment to economic development and job creation.

BY THE NUMBERS

The offering includes 47,422,680 common shares priced at $4.85 each and Eve's dual listing in the United States and Brazil, with BNDES subscribing to Brazilian Depositary Receipts (BDRs) at 26.21 reais ($4.86) each, according to Eve.

BNDES's investment totals $74.9 million, according to the development bank. Embraer and other unnamed institutional investors also participated in the transaction, Eve said.

WHAT'S NEXT

Eve plans to use the proceeds from the BDRs to pay for services performed in Brazil, while the remaining net proceeds will be used for corporate purposes, including operations, potential acquisitions, strategic investments, and debt repayment.

The company expects its electric vertical takeoff and landing (eVTOL) aircraft to enter into service in 2027.

($1 = 5.3977 reais)