Timing however remains unclear. The
company said that authorisation from the
COUNTRYSûlNANCEûMINISTRYûISûOFTENûDONEûFARû
in advance of any issuance.
The approval comes as the company is
seeking to shed assets to strengthen its
lNANCESûFOLLOWINGûCOSTûOVERRUNSûATûITSû
Ituango hydro facility.
VENEZUELA
COURT DELAYS REDUCE DEFAULT RISKS
ON PDVSA 2020s
Oil company PDVSA will make every effort to
cover a close to US$1bn payment due on
October 27 on its 2020 bonds, which are
backed by shares from its US unit Citgo,
ANALYSTSûATû0û-ORGANûSAIDûINûAûRECENTûREPORT
A US court decision in August to grant a
motion by Canadian miner Crystallex to
attach shares of PDV Holding - which owns
Citgo - had raised fears that PDVSA had lost
any incentive to pay the 2020s.
7ITHû#HIEFûUDGEû,EONARDû3TARKûWAITINGû
to hear arguments from all parties involved
by December 20, PDVSA will now be able to
hold both PDV Holding and Citgo beyond
the time payments are due on the 2020s and
probably into next year, the bank said.
*0û-ORGANSûBASEûCASEûISûTHATû0$63!ûISû
willing and able to pay short-term
obligations on the 2020s, which continue to
be serviced unlike Venezuela’s other
outstanding bonds.
Since Venezuela stopped servicing its
bonds late last year, the country will be able
to garner default-related savings of
US$7.4bn for 2018. It is also possible that
#HINAûHASûAGREEDûTOûHELPûlNANCEûSOMEû
PDVSA obligations, the bank said.
Recovery value on the 2020s pre and post-
October 27 - when PDVSA is due to pay
US$842m of principal and US$107m of
interest - suggest prices above par.
But Crystallex attachment will cap the
bond trading above par as any excess above
the principal amount would be directed to
pay the Canadian miner its US$1.2bn claim,
the bank said.
Market prices suggest a lower recovery
VALUEûINûTHEû
ûRANGE ûWHICHûASSUMESû
a higher probability of default.REGIONAL
CAF FIVE-YEAR NETS A$100mCORPORACION ANDINA DE FOMENTO (Aa3/AA–/AA–)
focused on pricing rather than size for a
RELATIVELYûMODESTû!MûSALEûOFûlVE
YEARû
+ANGAROOûBONDSûVIAûJOINTûLEADûMANAGERSûANZ
and UBS last Thursday.
Against a challenging market backdrop, the
û/CTOBERûûSûWEREûPRICEDûATûûFORû
AûYIELDûOFû ûATûTHEûTIGHTûENDûOFûTHEûASSETû
SWAPSûPLUSûBPnBPûGUIDANCEûRANGE
While the Latin American development
bank is not a huge issuer Down Under, its
PREVIOUSûlVE
YEARûSALEûINû-ARCHûûRAISEDû
!MûWHILEûAû
YEARûPRINTûINû-ARCHû
ûWASûFORû!M
#!&ûLASTûVISITEDûTHEû+ANGAROOûMARKETûINû
*ANUARYûWITHûAû!MûINCREASEûTOûITSûû
September 14 2027 bonds, which took the
issue size up to A$320m.
)TûHASûFOURûOTHERûOUTSTANDINGû+ANGAROOSûnû
THEû!Mûû-ARCHûS ûTHEû!Mû
û.OVEMBERûS ûTHEû!Mûû*UNEû
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