Banks Close R$12 Billion Loan Proposal for Correios at Treasury’s Rate Limit

Overview

• A five-bank consortium of Caixa, Banco do Brasil, Santander, Itaú and Bradesco submitted terms near 120% of CDI, the maximum the Treasury permits to guarantee the deal.
• Correios and the Treasury are reviewing the new proposal after rejecting an earlier R$20 billion offer that carried roughly 136% of CDI.
• Financing is conditioned on a turnaround targeting profitability in 2027 with a voluntary layoff program for 15,000 workers, the closure of 1,000 units and expanded private-sector partnerships.
• To ease labor tensions, management extended the collective bargaining agreement to 28 February 2026 under TST mediation, while unions plan a 16 December vote on a strike following the cut of the year-end “vale-peru” and stalled inflation adjustments.
• The company has posted R$6.1 billion in losses through September and 13 consecutive loss-making quarters, and Finance Minister Fernando Haddad says the service must be “reinvented.”