Low-Cost Airline Gets BNDES Loan

Brazil’s BNDES national development bank will lend BRL254m to Azul Linhas Aereas Brasileiras for the purchase of 4 planes, it says. Azul, a low-cost airline set up last year by JetBlue founder David Neeleman, plans to use proceeds to fund 85% of its purchase from Brazilian manufacturer Embraer. The 15-year facility pays TJLP, now at 6.25%, according to a BNDES official. It is the first BRL-denominated loan supporting the purchase of airplanes for use in the domestic market, the development bank says. BNDES will fund 50% directly and pass the other half through Banco do Brasil.