Azul's airline subsidiary drew approximately R$1.3 billion from Brazil's BNDES on 29 September under a facility funded by the National Civil Aviation Fund. The full agreement provides up to R$2.66 billion of financing. Azul expects a second tranche of about R$1.3 billion to become available in the fourth quarter. The facility reaches final maturity in July 2031.
The airline disclosed the transaction in a prospectus supplement filed with the US Securities and Exchange Commission on 30 September. Azul also announced the first disbursement in a material-fact notice dated 29 September.
FUNDING STRUCTURE
The first draw is backed by a letter of credit covering the principal amount disbursed. Azul has guaranteed its subsidiary's reimbursement obligations to the bank providing that letter of credit. The obligations are also secured by a controlled disbursement account and certain credit-card receivables generated by the passenger airline business.
BNDES signed the loan agreement with Azul Linhas Aéreas Brasileiras on 31 July. Funding comes from the National Civil Aviation Fund programme. The remaining availability is an expectation disclosed by Azul, not a completed second draw.
LIABILITY MANAGEMENT
Azul used part of the first tranche to prepay an existing higher-cost obligation of approximately R$400 million. The company said the broader financing would strengthen liquidity and financial flexibility while supporting liability-management initiatives.
The next concrete milestone is availability and any subsequent draw of the remaining R$1.3 billion during the fourth quarter.