Deal Analysis: Eurocopter export financing

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18 December 2009

Jonathan Bell examines how Eurocopter achieved financial success with its Brazilian helicopter supply contract.

It is rare for Trade Finance to cover financing for exports related to the defence sector, as the bulk of these deals are usually kept fairly quiet by those involved. But where a transaction is done with export credit agency support (ECA), much of the commercial contract and financial structure come into the public domain.

In this particular deal we see a remarkable success story for exports from the European helicopter manufacturer, Eurocopter, an EADS company, for the export of design, supply and construction of 50 type EC-725 helicopters to be supplied to Brazil’s three armed forces: the Air Force, Navy and Army. The commercial contract was initially signed by Eurocopter and its Brazilian subsidiary, Helibras, with the Ministry of Defence (MoD) of Brazil back in December

2008, and received government backing with both President Nicolas Sarkozy or France and President Ignacio Lula da Silva present at the signing.

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