BONDS NEWS | Mon Nov 21, 2016 | 3:56pm EST
UPDATE 1-Venezuela's PDVSA delays $404 mln coupon payments on bonds -JPMorgan
(New throughout, adds details on coupon amounts, context)
Nov 21 Venezuelan state oil company PDVSA has activated a 30-day grace period for $404 million in interest payments on its 2021, 2024 and 2035 bonds, JPMorgan analysts said in a report on Monday.
The analysts added that they expect PDVSA will make the payments within the next month, citing the company's recent swap operation to exchange bonds coming due in 2017 for new bonds maturing in 2020.
"We still believe PDVSA will make these payments during the grace period. However, this highlights the cash difficulties and mismanagement of PDVSA with regards to its liabilities," the research note reads.
The report noted that PDVSA did make a $135 million coupon payment due this month on bonds maturing in 2026, citing information provided by paying agent Citi and settlement group Clearstream.
Citi and PDVSA did not immediately respond to request for comment. Three bondholders confirmed the delay to Reuters.
Low oil prices have stressed Venezuela's socialist economy, prompting Wall Street concerns that it could default on its obligations.
President Nicolas Maduro says Venezuela and PDVSA will meet all their debt commitments and calls default talk a right-wing conspiracy against him. (Reporting by Corina Pons and Eyanir Chinea; Writing by Brian Ellsworth; Editing by Sandra Maler and David Gregorio)