US issues new general licence to delay authorisation of PdVSA bond transactions

6 May 2026

The United States has issued General License 5W, which authorises certain transactions related to Venezuela's state-owned oil company's 2020 8.5% bond.

• The licence takes effect on 19 June 2026.

• It authorises "all transactions related to, the provision of financing for, and other dealings in the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond" that would otherwise be prohibited by Executive Order 13835.

• Transactions involving the sale or transfer of CITGO shares in connection with the PdVSA 2020 8.5% bond remain prohibited until 19 June 2026, unless OFAC specifically authorises them.

• GL 5W supersedes and replaces GL 5V.

PdVSA exchanged unsecured debt for a new 2020 bond with an 8.5% coupon, secured by a lien over its subsidiary, CITGO Holding. OFAC issued GL 5 after the US issued EO 13835, which restricted US persons from engaging in certain transactions involving the Venezuelan government or its entities. This allowed bondholders to enforce their rights against the CITGO Holding shares if PdVSA defaulted under the bond documents.

The US has updated FAQ 595 to reflect GL 5W. All US general licences are on our US Licensing page.