En Español

Very usefull links


News links




Dow Jones

Oil price



Views and News





PDVSA says making bond payments




By Deisy Buitrago and Brian Ellsworth

Petroleumworld 11 27 2017

Venezuelan state oil company PDVSA said on Friday it was making last-minute payments on two bonds close to default, including one backed by shares in U.S.-based refiner Citgo, and called for “trust” as it seeks to maintain debt service amid a deepening economic crisis.

Failure to complete payment on PDVSA's 2020 bond by Monday could allow bondholders to begin the process of seeking shares in Citgo - a PDVSA subsidiary that generates hard currency for the cash-strapped country.

But that appears unlikely in the short-term because investors have broadly been tolerant of payment delays and even some default announcements as Venezuela insists it will continue servicing the hugely profitable bonds.

“PDVSA calls on bondholders and investors to trust the logistical, productive and financial capacities of the (company), which has met its commitments despite vulgar sabotage by the imperialists and their domestic lackeys,” the firm said via Twitter.

Despite general investor tolerance, banks have become increasingly suspicious of any Venezuela-related transactions due to sanctions imposed by Washington against President Nicolas Maduro's government over corruption and accusations it has undermined democracy in the OPEC nation.

Some $233 million in interest on the 2020 and 2022 bonds were due on Oct. 27 and Oct. 28. PDVSA has routinely been using 30-day grace periods to make such payments due to severe cash-flow problems.

The PDVSA 2020 bond was down 0.250 points to bid 78.000 while the 2022 bond was unchanged from Thursday at a price of 31.170, according to Thomson Reuters data.

Bondholders consulted by Reuters say they have at times waited as much as two weeks for transfers to be completed.

Even if the 2020 bond payment were delayed past next week, any default would be considered “cured” once investors received the corresponding funds, according to bondholders.

Story by Deisy Buitrago and Brian Ellsworth ; Writing by Brian Ellsworth; Editing by Susan Thomas and Tom Brown from Reuters.

reuters.com 11 24 2017

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels



Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.