Venezuela Citgo Petroleum on track for USD 2.5bn profit in 2022 - supervisory board According to the board that oversees the Houston-based corporation, refiner Citgo Petroleum is on track to make a USD 2.5bn profit this year, which it intends to use towards paying down debt and improving the dependability of its operations.

 

Weekly Newsletter 28th-30th December 2022 This material does not constitute 'investment research' as defined by the rules of the Financial Conduct Authority. This material is not intended for Retail Clients, Details and listings for these and other assets are available on the IlliquidX Platform on www.illiquidx.com

Sovereigns Venezuela Citgo Petroleum on track for USD 2.5bn profit in 2022 - supervisory board According to the board that oversees the Houston-based corporation, refiner Citgo Petroleum is on track to make a USD 2.5bn profit this year, which it intends to use towards paying down debt and improving the dependability of its operations. Venezuela opposition vote to remove Guaido's interim government To form a unified front before the likely 2024 presidential elections, Venezuela's political opposition to the country's governing Socialists overwhelmingly voted last Thursday to overthrow the Juan Guaido-led interim administration. Three of the four main opposition organisations supported the move, but Guaido's Popular Will opposed it. Before it can be approved, the motion must go through another consultation, which is slated for this week. Opposition leader last week, such as, Henrique Capriles (PJ), Gustavo Duque (FV), and Julio Borges, former VP of the 2015 National Assembly and former ally of Guaido, all rejected the continuance of the interim government headed by Guaido. In the last months, many opposition parties showed their discontent with Guaido and the management of the interim government.  It was disclosed that, with the pressure and help of the US government, the Guaido administration offered opposition officials/leaders/delegates facilitation to US VISAs and significant positions in a future hypothetical government in a way to persuade the voters to vote for the continuance of the interim government. The top parties who voted against and proposed a new plan for the replacement of the Guaido Interim government were Primero Justicia, Fuerza Vecinal, Un Nuevo Tiempo and Accion Democratica Popular Will, Guaido’s party, voted in favour. The proposal was approved with 72 votes in favour during a virtual meeting. The bill will now go to a committee, and then return to a second discussion which will happen sometime this week. Citgo announces cancellation of millionaire debt of more than one billion dollars Citgo Petroleum Corporation paid USD 1.056bn. The figure corresponds to the entire outstanding debt of the secured Prime Term B Loan, maturing in March 2024.  Payment was made entirely in cash. Spain appoints ambassador to Venezuela after 2-year vacancy Spain appointed Ramon Santos as the new Ambassador to Venezuela after two years without a top envoy, according to the minutes of a cabinet meeting.  The appointment of Santos, who was serving as charge d’affaires in Caracas, was approved on Tuesday. Issuer Ticker Bid Ask Republic of Venezuela VENZ 13 ⅝ 08/15/18 8.75 9.75 Republic of Venezuela VENZ 7 12/01/18 7.5 8.5 Republic of Venezuela VENZ 7¾ 10/13/19 7.5 8.5 Republic of Venezuela VENZ 6 12/09/20 7.5 8.5 Republic of Venezuela VENZ 12¾ 08/23/22 8.5 9.5 Republic of Venezuela VENZ 9 05/07/23 7.75 8.75 Republic of Venezuela VENZ 8¼ 10/13/24 7.75 8.75 Republic of Venezuela VENZ 7.65 04/21/25 7.75 8.75 Republic of Venezuela VENZ 11¾ 10/21/26 8.75 9.75 Republic of Venezuela VENZ 9 ¼ 09/15/27 8.75 9.75 Republic of Venezuela VENZ 9¼ 05/07/28 8.25 9.25 Republic of Venezuela VENZ 11.95 08/05/31 8.75 9.75 Republic of Venezuela VENZ 9 3/8 01/13/34 8 9 Republic of Venezuela VENZ 7 03/31/38 7.75 8.75 Republic of Venezuela ICSID Claims Call desk for Prices Petróleos de Venezuela SA PDVSA 8½ 10/27/20 19 20 Petróleos de Venezuela SA PDVSA 9 11/17/21 4.5 5.5 Petróleos de Venezuela SA PDVSA 12¾ 02/17/22 4.5 5.5 Petróleos de Venezuela SA PDVSA 6 10/28/22 2.5 3.5 Petróleos de Venezuela SA PDVSA 6 5/16/24 4.5 5.5 Petróleos de Venezuela SA PDVSA 6 11/15/26 4.5 5.5 Petróleos de Venezuela SA PDVSA 5⅜ 04/12/27 4.5 5.5 Petróleos de Venezuela SA PDVSA 9¾ 05/17/35 4.5 5.5 Petróleos de Venezuela SA PDVSA 5½ 04/12/37 4.5 5.5   *Indicative price for position with institutional size only. For smaller sizes please call desk.

vensteigt

 

Venezuela

US senators present a bill to extend UN fact-finding mission in Venezuela

US Senators presented a bill to support extending the mandate of the United Nations Fact-Finding Mission (UN FFM) on Venezuela until a resolution of the crisis in Venezuela. The bill presented establishes that the US Secretary of State shall take actions "as may be necessary" to use its "voice, vote, and influence" in the United Nations Human Rights Council (UNHRC) and the United Nations General Assembly (UNGA) to seek presidential election with international standards for a free, fair, and transparent electoral process. It also seeks to end Nicolas Maduro's usurpation of presidential authorities; restore democracy and the rule of law; free political prisoners and facilitate the consistent delivery of humanitarian aid.

Interim government to disappear next 5th January 2023: José Ignacio Hernández

In an interview with local news outlet Petroguía, the former special prosecutor of the interim government, José Ignacio Hernández, said that the interim government will disappear on 5^th January 2023, because the "majority of the National Assembly elected in 2015" decided it. As a result, Henández, who currently works as a legal consultant, argues that as the Maduro administration would be the only government of Venezuela left, it would have the right to claim control over Citgo even though the US doesn't recognize it as the government of Venezuela. Citgo is an oil refining company owned by PDV Holding (PDVH), which in turn is owned by state-owned Petroleum of Venezuela (PDVSA).

The legal consultant stated that Maduro would likely ask the US for a license to appoint the board of PDVH. The interviewer showed skepticism that the US would accept granting Maduro such a license, but Hernández questioned: if not Maduro, "who's going to manage Citgo?" "Citgo is on the brink of a massive governance crisis that will put that company in a much more precarious position than it already is," added Hernández.

National Assembly may consider reforming the country's hydrocarbons law “eventually”

According to local news outlet Carpe Diem, William Rodriguez, a lawmaker of the National Assembly (Asamblea Nacional, AN) and chairman of the hydrocarbons subcommittee, said that the AN may eventually debate the Venezuelan Oil Chamber's demand to modify hydrocarbons law to remove or change the article that reserves the primary services in the oil industry to the state. Furthermore, he said that the AN is not considering reforming the hydrocarbons law given the restrictions laid out in General License no. 41.

Belize agrees on a USD 250m reduction of its debt with Venezuela

The Belize government negotiated a reduction of more than USD 250m in debt with Venezuela under the PetroCaribe initiative, a regional agreement to acquire oil. Belizean Prime Minister John Briceño informed the country's Parliament that this would result in a 6% to 7% decline in the debt-to-gross domestic product ratio. Briceño also explained that when Belize can pay Venezuela, it will repay a reduced amount of the debt and will do so from the date of a new agreement under the original terms provided in PetroCaribe, which has an interest rate of 2% with a repayment period of 25 years.

Guaidó proposes continuity of the interim government (National Assembly 2015) one more year

The president in charge of Venezuela, Juan Guaidó, requested before the directive of the legitimate National Assembly the reform of the Statute for the Transition to guarantee the exercise of parliamentary controls forone year from 5^th January 2023, or until the constitutional and democratic order is reconstituted. The extraordinary session would be convened for this Thursday, December 22^nd. 

 

Issuer	Ticker	Bid	Ask
Republic of Venezuela	VENZ 13 ⅝ 08/15/18	8.75	9.75
Republic of Venezuela	VENZ 7 12/01/18	7.5	8.5
Republic of Venezuela	VENZ 7¾ 10/13/19	7.5	8.5
Republic of Venezuela	VENZ 6 12/09/20	7.5	8.5
Republic of Venezuela	VENZ 12¾ 08/23/22	8.5	9.5
Republic of Venezuela	VENZ 9 05/07/23	8.0	9.0
Republic of Venezuela	VENZ 8¼ 10/13/24	8.0	9.0
Republic of Venezuela	VENZ 7.65 04/21/25	8.0	9.0
Republic of Venezuela	VENZ 11¾ 10/21/26	8.50	9.50
Republic of Venezuela	VENZ 9 ¼ 09/15/27	9.00	10.00
Republic of Venezuela	VENZ 9¼ 05/07/28	8.00	9.00
Republic of Venezuela	VENZ 11.95 08/05/31	8.5	9.5
Republic of Venezuela	VENZ 9 3/8 01/13/34	8.00	9.00
Republic of Venezuela	VENZ 7 03/31/38	8.0	9.0
Republic of Venezuela	ICSID Claims	Call desk for Prices
Petróleos de Venezuela SA	PDVSA 8½ 10/27/20	19.0	22.0
Petróleos de Venezuela SA	PDVSA 9 11/17/21	4.50	5.50
Petróleos de Venezuela SA	PDVSA 12¾ 02/17/22	4.50	5.50
Petróleos de Venezuela SA	PDVSA 6 10/28/22	2.5	3.5
Petróleos de Venezuela SA	PDVSA 6 5/16/24	4.50	5.50
Petróleos de Venezuela SA	PDVSA 6 11/15/26	4.50	5.50
Petróleos de Venezuela SA	PDVSA 5⅜ 04/12/27	4.50	5.50
Petróleos de Venezuela SA	PDVSA 9¾ 05/17/35	4.5	5.5
Petróleos de Venezuela SA	PDVSA 5½ 04/12/37	4.5	5.5

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

Ecuador

China, Ecuador start first round of free trade talks

A free trade agreement negotiated between China and Ecuador is nearly finished, President Guillermo Lasso said in a streamed speech during the inauguration of a China-Latin American business conference in Guayaquil. “A highly efficient negotiation has gone ahead in less than 10 months, and I can confirm that the accord is practically closed,” Lasso said.  Deal to protect Ecuadorian industrial interests, include an e- commerce chapter and immediately boost export opportunities by more than USD 1bn. 

Issuer	Ticker	Bid	Ask
REPUBLIC OF ECUADOR	ECUA 5 1/2 07/31/30	62.2	63.2
REPUBLIC OF ECUADOR	ECUA 0 07/31/30	37.3	38.4
REPUBLIC OF ECUADOR	ECUA 10 08/15/30	15.6	20.2
REPUBLIC OF ECUADOR	ECUA 7 1/4 01/30/35	15.5	20.1
REPUBLIC OF ECUADOR	ECUA 2 1/2 07/31/35	44.1	45.1
REPUBLIC OF ECUADOR	ECUA 1 1/2 07/31/40	39.2	40.1
REPUBLIC OF ECUADOR	ECUA 1 1/2 07/31/40	27.8	28.4

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