PDVSA says it will sell $3bn of 2017 bonds in the local market, with further details about the offer due October 18. As with previous government offerings, investors will be allowed to buy the dollar-denominated bonds with VEB. The offer is directed at individuals and businesses with the “sector productivo nacional” designation. The state-backed oil company also plans to offer holders of its 2011 bonds an opportunity to exchange them for 2013 bonds, with further details to be announced in coming days. PDVSA does not name banks, through Citi is rumored to be on the transaction.
Category: Venezuela
Posted inDaily Brief
Venezuela Continues Nationalization Spree
The government of Hugo Chavez says it has nationalized oil lubricants firm Industrias Venoco, its subsidiaries and fertilizer company Fertinitro. The nationalization of the companies is being done to “reduce the prices of lubricants” as “PDVSA produces lubricant bases and then these private companies buy them and resell them at 4-5 times the original price.” Venoco officials could not be reached for comment. US-based Koch, which holds a 35% stake in Fertinitro, says it has not been told about the nationalization. Italy’s Snamprogetti holds a 20% in Fertinitro and Venezuelan state-run petrochemical company Pequiven holds 35%.
Posted inDaily Brief
FertiNitro Bond Pressure Lingers
Fitch says it is keeping the CCC ratings of Venezuela’s FertiNitro Finance’s $250m 8.29% secured bonds due 2020 on rating Watch Negative. Fitch expects rating pressure to remain through 2011, when the project reaches its maximum annual debt service requirement. The subsequent decline in debt service coincides with the maturity of bank debt separate from the secured bonds. Fitch notes that FertiNitro on September 28 made timely payment of $40.3m in semi-annual debt service. “Overall, FertiNitro continues to make progress since Fitch’s last review in March 2010 with improved operational performance, resulting in positive cashflow and a debt service coverage ratio of 1.98 times,” it adds. FertiNitro is expected to deposit over $36m to the debt service reserve fund after the October debt payment.
Posted inMagazine
Venezuela Investors Await Change
While some still make money under the radar in Venezuela, most foreign investors monitor politics for signs of an opportunity.
Posted inWeb Articles
Absorbing Extra Currency
Despite having one of the world’s richest oil reserves, Venezuela’s economy must still fight to overcome the effects of an overvalued currency and an unstable business environment.
Posted inWeb Articles
Down and Out of Fuel
Despite having one of the world’s richest oil reserves, Venezuela’s economy must still fight to overcome the effects of an overvalued currency and an unstable business environment.
Posted inWeb Articles
Ironing Out Ups and Downs
Venezuela’s economy has always risen and fallen with the price of oil. But pressure from President Chávez and a new investment law are creating further challenges.
Posted inWeb Articles
Keeping Damage to a Minimum
Venezuela’s financial services industry is remarkably solid and profitable. But bankers are worried about the effect of unemployment, inflation and recession on their institutions.
Posted inWeb Articles
Negotiating the High Wires
An interview with Vicente Llatas, executive vice president of CanTV, Venezuela’s biggest telecoms provider.
Posted inWeb Articles
Resource Rich, Cash Poor
PDVSA needs to invest more to keep current energy production at its present level. Rising operating and production costs are making the goal more elusive.
by Brian S. McBeth