The Maduro conditional offer expired on 14th March 2021 and won’t be extended again, however the government said it will keep talking with Venezuela, PDVSA and Electricidad de Caracas bondholders in order to reach agreements under the same conditions as those with whom the Tolling Agreements are entered into.

 Venezuela

Last week, Maduro pledged to resolve shortages of diesel for farmers after he authorized the United Nations World Food Programme (WFP) to enter Venezuela to supply food to school children. Former U.S. Special Representative for Venezuela Elliott Abrams wrote on the Council on Foreign Relations blog that the renewal of oil-for-diesel swaps had to be conditioned to the entrance of the World Food Programme in Venezuela. Caracas previously refused to allow the World Food Program operates in Venezuela but turned back and Maduro even met with the Trump appointee executive director to the WFP David Beasley in the Latin American country.
Also last week, Bloomberg reported that Guaido approved the release of $152m of frozen funds, of which about $100m will be used to buy vaccines through the World Health Organization-backed Covax initiative or other organizations, according to a budget report approved by the National Assembly. Another $23m will go to what was termed “defending democracy,” along with $2.3m in advising, security and travel costs for his inner circle with no details disclosed on a payment to Guaido, if any.

For Venezuela bonds, the de-jure and de-facto administrations disagree on how bondholders should look at prescriptions periods. On 28th September 2020, Venezuela’s opposition-designated attorney general, appointed by National Assembly President Juan Guaido, published a statement saying that it is the view of the Guaido team that the contractual prescription period has not begun to run in respect of an overdue amount of principal or interest payable under any of the bonds issued by the government. According to the opposition government, the 10 and 3 year periods set out in the prescription clause of most Venezuela, PDVSA and ELECAR bonds will not begin to run unless and until:

            (i) the Fiscal Agent receives the full amount owed by the Republic and

            (ii) the holders have been notified of such event.

At the same time, attorney general indicated the statutory limitation period of six years under the laws of New York still applies.

This followed a statement from Maduro’s finance minister Delcy Rodriguez who highlighted that with the third anniversary for the first missed bond payment in 2017 coming soon, prescription deadlines for interests will expire and the launch on 15th  September 2020 of the Maduro conditional offer. Under the offer, bondholders would agree to renounce to rights to litigate and in exchange prescriptions deadlines would be waived.
http://www.mppef.gob.ve/comunicados-oficiales/

The Maduro conditional offer expired on 14th March 2021 and won’t be extended again, however the government said it will keep talking with Venezuela, PDVSA and Electricidad de Caracas bondholders in order to reach agreements under the same conditions as those with whom the Tolling Agreements are entered into.

 

Credit	Type / ISIN	Indicative price (%)*
Venezuela	VENZ 13 5/8 08/15/18	10	11
Venezuela	VENZ 9 ¼ 09/15/27	10	11
Venezuela	VENZ 7 3/4 10/13/19	9.5	10.5
Venezuela	VENZ 6 12/09/20	9.5	10.5
Venezuela	VENZ 12 3/4 08/23/22	10	11
Venezuela	VENZ 9 05/07/23	9.5	10.5
Venezuela	VENZ 8 1/4 10/13/24	9.5	10.5
Venezuela	VENZ 7.65 04/21/25	9.5	10.5
Venezuela	VENZ 11 3/4 10/21/26	10	11
Venezuela	VENZ 9 1/4 05/07/28	9.5	10.5
Venezuela	VENZ 11.95 08/05/31	10	11
Venezuela	VENZ 9 3/8 01/13/34	9.5	10.5
Venezuela	VENZ 7 03/31/38	9.5	10.5
Venezuela	ICSID Claims	Call desk for Prices
PDVSA	PDVSA 8 1/2 10/27/20	25	28
PDVSA	PDVSA 9 11/17/21	3.5	4.5
PDVSA	PDVSA 12 3/4 02/17/22	3.5	4.5
PDVSA	PDVSA 6 10/28/22	3.5	4.5
PDVSA	PDVSA 6 05/16/24	3.5	4.5
PDVSA	PDVSA 6 11/15/26	3.5	4.5
PDVSA	PDVSA 5 3/8 04/12/27	3.5	4.5
PDVSA	PDVSA 9 3/4 05/17/35	3.5	4.5
PDVSA	PDVSA 5 1/2 04/12/37	3.5	4.5
PDVSA	Promissory Notes	Call desk for Prices
PDVSA	Trade Receivables	Call desk for Prices

* Indicative price for positions with institutional size only. For smaller sizes please call desk