Barclays Sees PDVSA 2020 Bonds Paying Out at Premium

Holders of Petróleos de Venezuela’s bond maturing in 2020 will likely be paid out at $115 if the court-ordered sale of US-based refiner Citgo Petroleum’s parent goes through this summer, Barclays credit strategists Jason Keene and Sebastian Vargas and economist Alejandro Arreaza said in a Tuesday note to clients.

• Barclays recommends to buy PDVSA 20 bonds
  • Investors are likely to recover par plus accrued interest, implying an upside of 28 cents on the dollar from current price levels
  • “Assuming legal risks of 10% and extension risk to the end of 2024, we find fair value to be c.$94, ...