By Brazil Stock Guide – Brazil’s state-owned postal operator Correios is moving to secure a R$20 billion loan, according to reports from Brazilian outlets including Estadão and Folha de S.Paulo. The financing is being structured by a consortium of Banco do Brasil, Citibank, BTG Pactual, ABC Brasil and Safra, and still requires final approval from the National Treasury, which would act as guarantor and absorb the credit risk should the company default.
Local press says the deal is designed to stabilize the company’s finances and underpin a broader restructuring effort after 12 consecutive quarters of losses, including R$4.37 billion in the first half of 2025. The operation would become the largest federal guarantee extended to a state-controlled entity in 15 years, highlighting the severity of Correios’ operating decline.
Reports add that the Treasury is expected to review the loan documentation next week. The inclusion of the federal government as guarantor reduces risk for the participating banks but also raises concerns about fiscal exposure should the postal operator’s financial deterioration deepen.
Correios said in a statement that additional details will only be released after supervisory authorities conclude their assessment. The case is being monitored closely in Brasília as prolonged stress at Correios could add pressure to public accounts and lenders with exposure to loss-making state entities.