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Brazil Formalizes R$12 Billion Union-Backed Loan to Correios in DOU Publication

The 15-year facility at rates near the Selic is conditioned on a restructuring aimed at profitability by 2027.

Overview

  • Saturday’s Diário Oficial da União published the loan extract, clearing Correios to draw funds as early as next week, with reports pointing to Tuesday.
  • The credit comes from a five-bank syndicate—Caixa, Banco do Brasil, Bradesco, Itaú and Santander—under a Union guarantee following Treasury approval.
  • Proceeds are designated for working capital and strategic investments, with immediate use to cover salaries, precatórios and overdue debts to restore compliance.
  • The contract runs to 2040 with a 15-year amortization and interest near the Selic benchmark.
  • Loan conditions tie to a turnaround plan that targets voluntary departures of about 15,000 employees, closure of roughly 1,000 units and asset sales of around R$1.5 billion to support a return to profit in 2027.