Zarvan
ELITE MEMBER
- Joined
- Apr 28, 2011
- Messages
- 54,470
- Reaction score
- 87
- Country
- Location
Brazil's Gripen procurement programme took a big step forward with the Senate's approval of the financing agreement on 5 August. Source: Saab/Shutterstock
The Brazilian Federal Senate has approved a USD4.6 billion financing agreement for the procurement of 36 Saab Gripen E/F fighter aircraft, the Reuters news agency reported.
The agreement, which was signed on 5 August, ratifies a deal between the Brazilian Ministry of Defence and Swedish Export Credit Corporation for a financing plan for the aircraft that was concluded on 29 July.
Under the arrangement, annual interest rates will be fixed at 2.19%, compared with the 2.54% originally requested by the Swedish government. Sweden had been reluctant to reduce the rate, but was persuaded to do so to prevent the deal becoming a casualty of Brazil's current economic troubles. Brazil has 25 years to repay the loan, with an eight-year grace period.
The Senate's approval of the financing agreement will come as a welcome boost to the Gripen E programme, which had already suffered the misfortune of having the financing arrangement for the sale of 22 aircraft to Switzerland rejected by a popular vote in April 2014. Brazil had already had to cancel plans to lease 12 Gripen C/D aircraft from the Swedish Air Force ahead of the commencement of Gripen E/F deliveries for financial reasons, and the procurement programme could ill afford any further setbacks or significant delays.
Brazil announced its intention to procure 36 Gripen aircraft (28 single-seat Gripen Es and eight twin-seat Gripen Fs) to fulfil its longstanding F-X2 requirement in December 2013. With production of the first 15 airframes to be completed at Saab's Linkoping facility in Sweden, the remainder will be built at a yet-to-be-established line in Brazil. The first aircraft is scheduled for delivery in 2019 and last in 2024.
Beyond the 36 aircraft already ordered, the Brazilian Air Force expects to field a further 72 Gripen E/Fs by the time deliveries are complete. A senior service official previously disclosed that all 108 aircraft will be delivered in three batches running from 2019 through to 2032. It is likely that the two further batches will be wholly assembled in Brazil, as will the aircraft for any future regional customers.
As part of the USD5.4 billion deal for the aircraft, weapons, and support, Saab and the Brazilian Aeronautics Command (COMAER) are to enter into a 10-year agreement for industrial co-operation projects, including technology transfer to Brazilian industry.
Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options ihs.com/contact
To read the full article, Client Login
(404 of 542 words)
Brazilian Senate approves Gripen financing deal - IHS Jane's 360
