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Brazil’s Correios Secures R$12 Billion, 15-Year Loan With Federal Guarantee

The government-backed financing hinges on an aggressive turnaround plan targeting payroll cuts and closures to restore solvency.

Overview

  • The state postal operator signed the contract and had the loan extract published in the Diário Oficial, unlocking R$10 billion this year and R$2 billion by the end of January 2026.
  • The syndicate comprises Caixa Econômica Federal, Banco do Brasil, Bradesco, Itaú and Santander, with a sovereign guarantee that commits the federal government if the company defaults.
  • The facility runs for 15 years with roughly three years of grace and costs about 115% of the CDI, staying within Treasury parameters for guaranteed credit.
  • Disbursements are conditioned on a restructuring that includes a voluntary exit program for 15,000 employees and the closure of about 1,000 units, with the detailed plan slated for presentation on Monday.
  • Proceeds will cover urgent obligations such as salaries, precatórios and overdue debts and support working capital, following heavy losses exceeding R$6 billion through September and a previously rejected R$20 billion proposal.