BNDES 'to extend up to $1.9bn in credit to airlines'

Brazilian development bank BNDES will help local airlines with up to BRL10 billion ($1.9 billion) in credit. 

The companies will issue five- to ten-year non-convertible bonds to be acquired by BNDES.  They will issue subscription rights to BNDES to acquire stakes in the companies, the paper added. 

Companies will not pay interest for a year and will have a two-year grace period to begin paying principal, The development bank is expected to announce the airlines package this week, and expects the airlines to begin receiving the credit in early May