SAO PAULO, Oct 15 (Reuters) - Electric aircraft maker

Eve has secured an $88 million loan deal with Brazil's

state development bank BNDES to fund the development of its

first production facility, it said in a statement on Tuesday.

WHY IT'S IMPORTANT

Eve, controlled by Brazilian planemaker Embraer ( ERJ ),

is one of a bevy of startups worldwide developing

battery-powered aircraft that can take off and land vertically

to ferry travelers on short city trips, allowing them to beat

traffic.

The firm, which expects its electric vertical take-off and

landing (eVTOL) aircraft to obtain certification and enter

service in 2026, has amassed nearly 3,000 potential orders ahead

of production with potential revenue of $14.5 billion.

BACKGROUND

Eve revealed last year that its first production facility

would be located in Taubate, Brazil, capitalizing on the town's

logistical advantages and proximity to Embraer's ( ERJ ) headquarters in

the neighboring town of Sao Jose dos Campos.

The plant is expected to eventually reach annual capacity of

480 aircraft.

LOAN DETAILS

The new funding agreement comes on top of a $92.5 million

credit line from BNDES announced in 2022 to support the

development of Eve's eVTOL, and a number of equity investments.

The new loan has a maturity of 16 years, Eve said.

KEY QUOTES

"This financing strengthens Eve's robust cash position by

adding long-term financing aligned with our company profile,"

Eve's Chief Financial Officer Eduardo Couto said.

"As we advance our eVTOL program development and

manufacturing efforts, our focus remains on delivering long-term

value for our shareholders with an optimal capital structure

mixing equity and debt."

($1 = 5.5957 reais)