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

The sovereign-guaranteed credit ties cash releases to a cost-cutting plan targeting a return to profit by 2027.

Overview

  • An extract in the Diário Oficial published on Dec. 27 formalizes the 15-year contract signed Dec. 26, with the first tranche expected early next week.
  • The financing carries a three-year grace period and interest around 115% of the CDI, below the Treasury’s 120% ceiling for guaranteed loans.
  • A five-bank syndicate will provide the funds: Banco do Brasil, Caixa and Bradesco at R$3 billion each, and Itaú and Santander at R$1.5 billion each.
  • Disbursements are scheduled at R$10 billion in 2025 and R$2 billion by end-January 2026 to cover working capital, salaries, precatórios and overdue debts.
  • The loan is conditional on a restructuring that includes a voluntary exit program for about 15,000 employees and the closure of roughly 1,000 units, after a costlier R$20 billion proposal was previously rejected by the Treasury.