Pdvsa Ponders Bond Swap To Ease Debt Payment - Economia - El Universal
Pdvsa ponders bond swap to ease debt payment
State-run oil holding Petróleos de Venezuela (Pdvsa) has to pay USD 4.3 billion this second half
Pdvsa paid debts amounting to USD 1.2 billion in the first half (File photo)
EL UNIVERSAL
Thursday August 14, 2014 10:29 AM
State-run oil holding Petróleos de Venezuela (Pdvsa) has to meet debts amounting to USD 4.3 billion this second half. In order to pay off these debts, the oil industry is considering the possibility of swapping bonds due this year.
According to Pdvsa's reports, the debt service (payment of capital and interests) in this period was scheduled at USD 5.5 billion; out of which USD 1.2 billion were paid in the first half. Therefore, the largest amount due has to be settled in the second half.
Financial sources asserted that Pdvsa's pension fund is likely to buy bonds due in 2014, in order to swap the bonds for other instruments due in a longer term.
A similar operation would be performed with investment bank Lazard, the firm that would buy the bonds due this year that are to be swapped afterwards.
Lazard would also be in charge of facilitating the upcoming sale of Pdvsa's US-based subsidiary Citgo. This choice reportedly has to do with the fact that Lazard has been advising the Venezuelan government to restructure its foreign debt, financial firm ArgusMedia noted this week.
Translated by Andreína Trujillo
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