PDVSA Looks Beyond LatAm for Loan

Venezuela’s PDVSA is out with a new $1.5bn 3-year syndicated loan at Libor plus 450bp. BES and China Development Bank are joint bookrunners and global coordinators on the new deal, suggesting other Asian lenders could also become involved, as well as traditional Europe-based lenders. However, unlike previous forays into the dollar bank market, the facility has not been shopped to some of PDVSA’s older relationship banks, to the apparent dismay of executives at some of those lenders. In January 2008, the oil company raised $1bn in 1-year funds at Libor plus 150bp with several regional lenders. Some of those banks say they have not been approached to participate in the new deal. That facility, which was paid down a year ago, was led by BNP, with BANDES, China Development Bank, RBS, Bladex, Banco do Brasil and Citi. Some local Venezuelan lenders also took smaller tickets. An executive involved in the new syndication says invitations went out Friday to a top tier of would-be lead arrangers, some of them Europe-based, and that a first round would likely be closed by early February. A retail syndication will likely follow, he adds.