PDVSA Reported With Trade Facility

According to news reports, PDVSA is out with a $1.5bn 3-year amortizing trade-related loan at Libor+450bp. China Development Bank and Banco Espirito Santo are reportedly global coordinators and bookrunners. “The cashflow situation at PDVSA is likely less than fully comfortable given declining oil production and a bloated cost structure,” says Goldman. Bankers on the deal were not available for comment. The facility had been expected following recent comments made by energy minister and PDVSA president Rafael Ramirez that his company was in talks for a $1.5bn syndicated bank loan. Venezuela last month said China has offered $20bn in long-term financing for strategic projects in the country, including oil and gas. Venezuela also agreed to form a joint venture to pump crude oil from a block in the Orinoco Belt.