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

Venezuela Flash Notes

PDVSA Expects to Increase Oil Production

July 6, 2016Hernán Yellati, Guillermo Quiroga & Oriana Covault

According to Oil Minister, Eulogio Del Pino, oil output could reach an estimate 2.9mbd OAS meeting ended with the dialogue initiative gathering more sympathizers The results from the signatures validation process (part of the Recall Referendum early stages) are expected

  • Thursday, May 25 2017

    - During a televised press conference, the top Public Prosecutor Luisa Ortega Diaz addressed several events regarding the wave of protests in Venezuela. In detail, the prosecutor denounced the possession of arms by the population despite the current ban by the Ministry of Interior, the performance of state security forces and military trials of civilians. One of the statements with greatest impact referred to the cause of death of a young opposition demonstrator product of a metal projectile fired by an official of the Bolivarian

  • Wednesday, May 24 2017

    - Finance Minister Ramon Lobo and the Executive Board of the Central Bank of Venezuela (BCV in Spanish) announced the start of operations of the new FX system DICOM. The system will work through two weekly auctions (the first one will take place tomorrow) and a bands’ system where the FX rate will fluctuate – the starting rate has not been announced yet. The official rate will be the lowest offered by those who are adjudicated, but a “contingent” auction will take place in case that such rate exceeds the upper band establis

  • Tuesday, May 23 2017

    - For today, the new FX scheme, DICOM, is set to begin operations, and yesterday the Minister of Foreign Trade and International Investment, Jesus Faria, assured that the main goal is to reduce the impact of the parallel dollar and to increase the assignment of currency for business. It is expected that today further details of the mechanism will be disclosed from the facilities of the Central Bank of Venezuela (BCV for its words in Spanish), so stay tuned for more.


    - The US Treasury Secretary, Steven Mnuchin, told the Senate yesterday that regulators would review Rosneft’s stake of Citgo Petroleum Corp., this as concerns have emerged over possible control from the Russian company in case that PDVSA fails to make payments on the bonds guaranteed by Citgo’s collateral. Senators raised their concerns – regarding Rosneft’s “control of a major US energy supplier” – on what they consider a national security matter to Mnuchin, who heads the Committee on Foreign Investment in the Unite


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