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 announced on Wednesday.

Eve, controlled by Brazilian planemaker Embraer, is among numerous startups worldwide developing battery-powered aircraft capable of taking off and landing vertically, designed to transport travelers for short city trips and aid in avoiding traffic.

The firm anticipates its electric vertical take-off and landing (eVTOL) aircraft will achieve certification and commence service by 2026, with nearly 3,000 potential orders already in place, forecasting potential 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," said Chief Financial Officer Eduardo Couto in a statement.

The Citi loan adds to an $88 million credit line from Brazil's state development bank BNDES, secured earlier this month to finance the development of Eve's first production facility in Sao Paulo state.

Following a successful raise of $95.6 million in new equity in July, involving investors such as Embraer and Japan's Nidec, the new loan elevates Eve's pro-forma liquidity to approximately $480 million.

This is an increase from 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 made its debut on the New York Stock Exchange in May 2022, raising roughly $400 million for developing and producing its eVTOL aircraft.