#BUSINESS NEWSNOVEMBER 1, 2017 / 10:08 PM / UPDATED 8 HOURS AGO
Some bondholders have received late PDVSA bond payment: sources
2 MIN READ
CARACAS (Reuters) - Some bondholders have received a payment on Venezuelan state oil company PDVSA’s 2020 bond that came due last week, three market sources said on Wednesday, allaying earlier concerns over the delay.
FILE PHOTO: The corporate logo of the state oil company PDVSA is seen at a gas station in Caracas, Venezuela, August 30, 2017. REUTERS/Andres Martinez Casares/File Photo
The focus for investors now switches to a $1.2 billion payment on a different bond due on Thursday.
The 2020 bond payment delay came at a time of worries that PDVSA will struggle to service debt due to an economic crisis spurred by the collapse of Venezuela’s socialist economic model.
President Nicolas Maduro insists the country and PDVSA will honor all debts and says default talk is a campaign against his government.
The $842 million amortization payment on the PDVSA 2020 716558AH4= bond was due last Friday.
But bondholders for several days said they had not received the funds, and complained of confusion over which financial services institutions were in charge of making transfers.
“Yes, they paid,” said an executive of a fund that invests in Venezuelan bonds.
PDVSA did not immediately respond to an email seeking comment.
On Thursday, the company faces a $1.2 billion principal and interest payment on its maturing 2017N bond VE055409692=.
Venezuela and PDVSA bonds were up across the board on Wednesday, following reports that the 2020 bond payment would be delivered by Thursday.
Reporting by Corina Pons, writing by Brian Ellsworth, editing by Rosalba O'Brien
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