Eve Secures $50 Million Loan from Citibank

By Gabriel Araujo

SAO PAULO (Reuters) – Electric aircraft maker Eve has obtained a $50 million loan from Citibank, strengthening its balance sheet and supporting the development of its "flying car," the company said on Wednesday.

Eve, controlled by Brazilian planemaker Embraer, is among a number of startups developing battery-powered aircraft that can take off and land vertically. This innovation aims to ferry travelers on short city trips, allowing them to bypass traffic.

The firm expects its electric vertical take-off and landing (eVTOL) aircraft to obtain certification and enter service in 2026. Eve has amassed nearly 3,000 potential orders ahead of production, with projected revenue of $14.5 billion.

"Eve continues to attract new investors, a sign of the continued confidence in our strategic plan and strong customer interest in our eVTOL aircraft," Chief Financial Officer Eduardo Couto stated.

The Citi loan follows an $88 million credit line secured from Brazil’s state development bank BNDES earlier this month to fund the development of its first production facility in Sao Paulo state.

After raising $95.6 million in new equity in July from investors, including Embraer and Japan's Nidec, this fresh loan increases Eve's pro-forma liquidity to about $480 million, as stated by the company. The previous key metric stood at around $340 million at the end of the second quarter.

"The bank loan, along with existing cash and credit lines, ensures that Eve remains well capitalized with a comfortable balance sheet and one of the highest cash runways in the advanced air mobility industry," Couto added.

Eve debuted on the New York Stock Exchange in May 2022, raising around $400 million to develop and produce its eVTOL aircraft.