Venezuela Flash Notes

A Positive Turnout

July 23, 2017BancTrust & Co. Research Team
Venezuela Flash Notes

Venezuela Places a New Dollar Bond

January 9, 2017BancTrust & Co. Research Team

Earlier today, a government official reported the issuance of USD5bn by the Republic, in dollar-denominated bonds. The transaction was a private placement for the Central Bank and state-owned bank Banco de Venezuela. This issuance would be the first made by

Venezuela Flash Notes

PDVSA Tendered 39% of 2017 Bonds

October 31, 2016BancTrust & Co. Research Team

After three deadline extensions, PDVSA announced final results on its offer to exchange PDVSA 2017 bonds for a new senior secured bond due in 2020. All-in, the results are positive as the exchange accomplishes to save around USD2.8bn in short-term

Venezuela Flash Notes

PDVSA Extends the Swap Early Deadline

October 14, 2016Hernán Yellati & Guillermo Quiroga

We believe PDVSA’s word about a lower than expected participation reaffirms the view we expressed in previous flash notes (see 29 September Venezuela Flash Note – Sweetening the Swap), about the challenges of the swap. It basically goes as follows:

Venezuela Flash Notes

Sweetening the Swap

October 4, 2016BancTrust & Co. Research Team

As we mentioned in several consultations last week, PDVSA increased the exchange ratios on the swap proposal, making it more attractive to bondholders. That is: increasing the exchange ratio to 1.22:1 for PDVSA 8.5% 2017 bonds, and 1.17:1 for PDVSA

  • Wednesday, November 15 2017


    - Amid uncertainty after the investors meeting, the attention continues to be on the interest payments which grace period expired this week (PDV’27, VENZ’19 and VENZ’24) and the call for default for both Venezuela and PdVSA. In this sense, the ISDA which is in charge since last week of assessing a credit default decision over the PDV’17 payment (which also arrived later than the day expected) said that they will meet again on Thursday with a deadline until Friday to make any decision on

  • Tuesday, November 7 2017


    - The selloff in sovereign and quasi-sovereign curves continued yesterday, with the first leading with an average 11.47% drop – thanks mostly to the whopping correction of both VENZ’18, as the old fell 51.73% and the new decreasing 48.64%. Meanwhile, the PDVSA curve closed the day with a -4% average result. This situation is likely to continue, in our view, for as long as payments of coupons in grace period are not being made, situation aggravated by the closeness of the deadlines of each gr

  • Thursday, November 2 2017


    - After yesterday’s comments of the Depository Trust Company of Venezuela’s bond payments, confirming the transaction and extra official information about some holders that already received payment on 2020 bond, the Venezuelan bonds showed positive movements. In this sense, we can use the PDV’20 experience to expect a similar process for the funds of the PDVSA 2017N to matured today for a total amount of USD1.170mn between principal and interest, with an announcement of the payment during

  • Wednesday, November 1 2017


    - Until today 01 January 2017, will be held the process to postulate for the municipal elections, which are expected for around 10 December. However, there is no clear information on the ongoing process and the opposition response has not been clear either. In detail, seven opposition parties has decided to not participate in the next electoral process, however we do not discard that some of its member could –at the very last minute- decide that they will participate as an independent candidat


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