Brazil's Embraer will sell 20 commercial jets to TrueNoord

SAO PAULO (Reuters) -Brazilian planemaker Embraer closed a deal to sell 20 of its E195-E2 commercial unit to leasing and management firm TrueNoord, in a deal valued at $1.8 billion, the companies said Tuesday. The deal includes purchase rights to potentially acquire 30 additional jets, which would be 20 E195-E2 units and 10 E175-E1 units, the companies added in a statement. The agreement is TrueNoord's first ever direct request to a planemaker. "The order is an important step in our continued growth as a global leasing platform," TrueNoord CEO Anne-Bart Tieleman said in the statement, highlighting the company's interest on regional jets. Embraer's commercial aviation unit head, Arjan Meijer, said the deal reflects a "significant acknowledgement of the capacities and success of the E2 family in the market." Both companies did not provide any details about when the jets' delivery would occur. Analysts at JP Morgan expect the market to react positively to the news, as Embraer "continues to gain new clients." Embraer's Brazil-listed shares were up more than 2% in early trading. Ratings agency Moody's changed the firm's outlook to positive right after the announcement, while affirming its Baa3 rating. Last week, Embraer formalized a deal to sell four military cargo planes to Sweden to replace the European nation's aging aircraft. In September, LATAM Airlines also announced the request of 24 E195-E2 aircraft, with purchase options for another 50. (Reporting by Fernando Cardoso; Editing by Aida Pelaez-Fernandez)

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