(Picture: Joedson Alves)

Correios secures R$ 12 billion loan to restructure finances in Brazil

Deal formalized with five major banks aims to modernize the state-owned company and ensure financial breathing room for the next 15 years.

The future of Correios, Brazil’s main logistics company, gained a new chapter this Saturday (27). The Official Gazette published the extract of a billionaire loan that promises to restructure the state-owned company’s finances.

The operation, approved by the National Treasury, will inject R$ 12 billion into the company’s coffers. The goal is clear: to allow Correios to balance its books and invest in improvements to continue operating efficiently.

Who is lending the money

To raise this amount, a union of five of the country’s largest financial institutions was necessary. The “consortium” of creditors is formed by a mix of public and private banks:

• Itaú Unibanco

• Bradesco

• Santander

• Banco do Brasil

• Caixa Econômica Federal

How the debt will be paid

The negotiated conditions give the company considerable breathing room to organize itself. The total term to pay off the loan is 15 years.

In addition, the contract provides for a 3-year grace period. This means that Correios will have initial time to invest and generate results before they start paying the heavier installments of the debt.

Interest rates below the usual ceiling

A positive point of the negotiation was the interest rate. The cost of the loan was set at 115% of the CDI (Interbank Deposit Certificate).

For the market, this rate is considered favorable, as it fell below the 120% of the CDI limit that the National Treasury usually accepts for operations backed by the Federal Government. This demonstrates confidence in the state-owned company’s recovery capacity.

Where the R$ 12 billion will go

The money will not only serve to pay overdue bills. The restructuring plan foresees the strategic use of these resources for:

• Working capital: Cash to keep day-to-day operations running smoothly.

• Investments: Modernization of logistics and infrastructure.

• Operation costs: Payment of administrative fees for the loan itself.

It is worth remembering that Correios’ initial request was for R$ 20 billion, but the Treasury approved a lower amount, adjusting the operation to the current financial reality.

National Treasury approval

The release of this credit was only possible because Correios managed to prove they have the means to pay.

According to the National Treasury, the state-owned company met all “payment capacity” criteria. This is a legal requirement for public companies to borrow money, ensuring there is a solid and validated plan for the company’s financial rebalancing.

Resumo em Português:

Os Correios oficializaram um empréstimo de R$ 12 bilhões para sua reestruturação financeira. A operação envolve cinco grandes bancos (Itaú, Bradesco, Santander, BB e Caixa) e terá um prazo de pagamento de 15 anos, com juros de 115% do CDI. O Tesouro Nacional aprovou a medida após validar a capacidade de pagamento da estatal, visando investimentos e capital de giro.

Resumen en Español:

Correios, la empresa estatal de correos de Brasil, oficializó un préstamo de 12 mil millones de reales para su reestructuración financiera. La operación involucra a cinco grandes bancos y tendrá un plazo de pago de 15 años, con una tasa de interés del 115% del CDI. El Tesoro Nacional aprobó la medida tras validar la capacidad de pago de la estatal, destinando los fondos a inversiones y capital de trabajo.