BES and CDB launch loan for PDVSA

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15 January 2010

Banco Espirito Santo (BES) and China Development Bank launch syndication of a major trade-related loan for Venezuelan oil producer PDVSA.

Banco Espirito Santo (BES) and China Development Bank (CDB) have today launched senior syndication of a $1.5 billion trade-related term loan credit facility for the Petróleos de Venezuela (PDVSA). BES and CDB are acting as initial mandated lead arrangers, global coordinators and bookrunners.

The proposed facility is structured as a $1.5 billion three-year amortising trade-related credit facility, which will be used by PDVSA for general corporate...

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Poll

Gazpromneft stunned the market this week when it was revealed pricing for their five-year $1 billion pre-export financing was rumoured to be just above 300 basis points over Libor. Is the deal likely to be a syndication success?

Yes - this seems like a sensible pricing benchmark, why not?

No - are you crazy? These prices are ridiculous. What were these banks thinking?

27%

Yes - but for all the wrong reasons. A lack of other deals in the market, and the promise of future business with Gazpromneft will make it hard to ignore but don’t expect many to take up big tickets with this deal. There are much better deals out there.

64%