PDVSA Heard Syndicating $1 Billion Facility

Venezuelan oil producer PDVSA is heard in the market with a $1 billion one-year revolver through BNP Paribas, which has an option to renew. The margin is said to be 115bp over Libor, not enough for some bankers looking at it, given the political situation. The deal was launched in December, before the nationalization plan announced by Chavez, and apparently met resistance. ABN Amro, Calyon and Citigroup signed up, according to bankers not on the deal. The rare Venezuelan state-owned credit is cash rich and has a history of meeting its debt payments.