Azul Secures Up to R$2.66 Billion BNDES Loan

Overview

• Azul has a definitive loan agreement with BNDES under the FNAC program and already received an initial disbursement of about R$1.3 billion with the remaining amount expected in the fourth quarter of 2026.
• The total facility provides access to up to R$2.66 billion of long-term credit and carries a tenor of up to five years.
• Azul is using part of the proceeds to prepay roughly R$400 million of higher-cost debt as a liability-management move to lower near-term funding expenses.
• The company says the financing will reinforce liquidity and financial flexibility and support ongoing debt management and its long-term strategic plan.
• FNAC is a government-backed aviation credit program administered through BNDES that aims to help carriers refinance expensive obligations and smooth cash flow, so observers should watch the planned Q4 tranche and any follow-up changes to Azul’s debt schedule and interest costs.