Citigroup Inc. is set to overtake Deutsche Bank AG and Credit Suisse Group AG as the top underwriter of Venezuelan debt this year after managing state oil company Petroleos de Venezuela SA’s $3 billion bond sale.
Venezuelan opposition leader Henrique Capriles Radonski took a step back from the brink of a mounting confrontation with the government by calling off a march planned for today to protest the results of the April 14 presidential election.
Eike Batista’s oil company will get the first payment in a rescue plan as early as next week, said two people with knowledge of the transaction, offering a glimmer of hope it can salvage some value from Latin America’s biggest corporate debt debacle.
Venezuela sold $3 billion of bonds due in 2026, swelling total issuance this year to a record $7.2 billion as President Hugo Chavez looks to finance government social programs ahead of his re-election bid.
Since taking office in 1999, Hugo Chavez has spread his socialist revolution in Venezuela by seizing more than 1,000 companies. For bondholders that stuck by him, he’s also delivered returns that are double the emerging- market average.
Venezuela’s benchmark bonds plunged the most in four years as President Hugo Chavez’s re-election fueled concern he will extend government controls that have deterred investment and led to the region’s highest inflation.