Canaima Fund Lux ​​launches exchange offer in Italy on Venezuelan government bonds and PDVSAs

The Canaima Fund Lux ​​launches the first exchange offer, aimed at Italian institutional and professional investors, for Venezuelan bonds by exchanging them for its own financial instruments. The information document relating to the offer promoted in Italy was published today. A public offering, the first made worldwide by the Luxembourg vehicle created to defend the interests of institutional and professional investors, who have invested in Venezuelan bonds and the national oil company PDVSA, which in November 2017 defaulted, leaving 60 billion dollars of defaulted bondholders. The Canaima Fund (Canaima Fund Lux) intends to take over the government bonds issued by the Bolivarian Republic of Venezuela, defined as Bonds, through the exchange between the latter and the financial instruments that will be issued by the Fund itself, defined as Notes. Italy, since the default, for the exchange of Venezuelan bonds on the market, which are around a total value of 60 billion dollars globally. The Notes issued by the Luxembourg securitization vehicle are primarily addressed to professional investors such as investment firms, funds, banks and specialized operators. The Investment Fund aims to recover, in whole or in part, the credits deriving from the bonds issued by the Venezuelan government and by the state oil company PDVSA in default, through an active investment strategy which would include, among the various initiatives, the initiation of pre-litigation and litigation procedures aimed at maximizing recovery prospects. The Fund is open to new investors wishing to participate in the recovery of non-performing loans. The Canaima Fund Lux, the company explains, will offer representation and support to creditors in a difficult and complex context such as the Venezuelan one. Since the end of 2017, as is well known, Venezuela has no longer paid the approximately 60 billion dollars of bond debt issued by the same government of Caracas and by the state company Petroleos de Venezuela. US sanctions also do not allow US investors and institutions such as the World Bank and Monetary Fund to negotiate with Maduro’s economic officials. Further measures also prohibit the government from issuing new bonds. There is also a legal aspect that further complicates matters: the so-called “limitation clause” of Venezuelan bonds which could partly free the nation from interest and capital not paid to any creditor after six years of default. “Who is in possession of Venezuelan bonds and does not have the possibility of starting a legal dispute – says Celestino Amore, CEO of the IlliquidX company in London which offers operational advice to the Fund – can access the offer of the Canaima Fund, which allows you to exchange your securities with the instruments The ultimate goal is simple, which is to safeguard investors’ assets to ensure that they are treated fairly and that they benefit from the Fund’s proactive management and performance. “