A Competitive Coupon for PDVSA

A Competitive Coupon for PDVSA

Despite considerable odds, Venezuela's national oil company, Petróleos de Venezuela, managed in November to raise $500 million in 10-year global notes with a competitive 8.5% coupon, backed by future flows of receivables from oil exports. Investor appetite for Latin American risk has waned over the last few months but Latin America's top companies can still issue debt at lower prices than sovereigns if they issue asset-backed bonds. Yields on 10-year Venezuelan sovereign paper stood between 14% and 15% in early November. The new PDVSA issue has a semi-annual yield of 8.748% and a quarterly yield of 8.654%, although the company must keep a minimum of four times debt service coverag

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