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Venezuelan state oil firm's bonds dip as market shrugs off payment delay
October 31, 2017 / 4:36 PM / 22 days ago

Venezuelan state oil firm's bonds dip as market shrugs off payment delay

CARACAS, Oct 31 (Reuters) - Prices for Venezuelan state oil company PDVSA’s bonds were down slightly on Tuesday despite delayed delivery of funds for an amortization payment that was due last Friday, amid wider concerns that the OPEC nation is headed toward default.

Investors said they still had not received funds from a payment of $842 million on PDVSA’s bond maturing in 2020 that the company on Friday said it had transferred to JPMorgan.

PDVSA’s bond maturing in 2022 was down 0.740 percentage points to a bid price of 45.510, while PDVSA’s bond maturing in 2027 was down 0.075 percentage points to bid 29.300.

One market source told Reuters on Monday he had been told the funds were at JPMorgan and payment would likely be credited by Wednesday.

JPMorgan declined to comment. PDVSA, which has been hit by the combination of low oil prices and a deep economic crisis in the South American nation, did not immediately respond to an email seeking comment.

The PDVSA 2020 prospectus lists the paying agent - the financial institution which receives funds from the company paying the bond - as Law Debenture Trust Company of New York.

An official for Law Debenture contacted by Reuters last week said the paying agent role had passed to Delaware Trust.

A public relations manager for digital branding firm CSC, the parent company for Delaware Trust, did not immediately respond to an email seeking comment. (Reporting by Brian Ellsworth; Editing by Paul Simao)

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