Brazil Approves R$12 Billion Treasury-Backed Loan for Correios Restructuring

Overview

• The National Monetary Council created a R$12 billion specific sublimit for Correios and raised the 2025 federal guarantee cap to R$39.4 billion from R$27.4 billion.
• The financing runs for 15 years with a three-year grace period at 115% of the CDI, and Correios may use up to R$5.8 billion in 2025 in line with its revised deficit estimate.
• A five-bank consortium — Caixa Econômica Federal, Banco do Brasil, Bradesco, Itaú Unibanco and Santander Brasil — proposed the credit operation.
• Treasury approval is conditioned on a validated financial reequilibration plan, with contracts to be negotiated under PGFN and Treasury oversight, and the government rejects privatization in favor of partnerships such as with Caixa.
• The deal replaces a rejected R$20 billion offer priced near 136% of CDI, with the Treasury citing nearly R$5 billion in interest savings, and Senate consideration is expected in early 2026 with its president indicating support.