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

Will Russia’s recent ban on grain exports result in a significant rise in private risk insurance claims from grain traders unable to fulfil their contracts?

Yes – there will be more claims. The government’s actions allow traders, with PRI cover, to make claims through contract frustration.

No - the majority of Russia’s wheat production, some 70%-80%, is used for domestic consumption so the contracts represent only a small portion of the total wheat market, limiting the amount of potential claims.

23%

No - traders had a week’s notice before the ban allowing them to secure alternative supplies to fulfil contracts stated as optional origin.

23%

Maybe - but claims are likely to be limited to traders dealing in soft wheat whose contracts demand they source wheat only from Russia.

46%