Brazil Formalizes R$12 Billion Union‑Guaranteed Loan to Correios With First R$10 Billion Imminent

Overview

• An extra edition of the federal gazette confirmed the contract, signed with Caixa, Banco do Brasil, Bradesco, Itaú and Santander under a sovereign guarantee.
• The financing runs 15 years with a three‑year grace period at roughly 115% of CDI, staying below the Treasury’s cap for guaranteed loans.
• Disbursements are scheduled as R$10 billion now and R$2 billion by late January 2026, earmarked to clear salaries, court‑ordered debts and other arrears to restore compliance.
• Release of funds is conditioned on a restructuring to be presented by management, including a PDV targeting 15,000 exits in 2026–2027 and network reductions, with projected savings of about R$2.9 billion in 2027.
• A prior R$20 billion proposal was rejected over cost; with only R$12 billion approved, reports indicate the company may seek additional financing in 2026 as unions challenge changes at the labor court.