Brazilian aerospace giant Embraer has signed a memorandum of understanding with ICBC Financial Leasing of China.
The deal will see ICBC provide up to $2.5 billion in financing for planes over five years in one of the most promising markets for Embraer.
The manufacturer expects demand for 430 commercial jets of up to 120-seat capacity and 635 executive jets in the next ten years in the fast-growing Asian giant.
“The rapid development of the Chinese economy has resulted in high growth rates for regional and executive aviation, making it one of the greatest potential markets in the world,” said Paulo Cesar de Souza e Silva, Embraer’s head of commercial aviation.
ICBC Financial Leasing is a wholly-owned subsidiary of the Industrial and Commercial Bank of China.
It has a business spanning shipping and large equipment as well as aviation.
Embraer entered the Chinese market in 2000 and has since received 153 firm orders for commercial and executive jets.
More than 110 have been delivered.
The company now accounts for three-quarters of China’s market for commercial jets of up to 120 seats.